Can I really ask the buyer to pay my agent’s fee if I’m selling my home “For Sale By Owner” in Rhode Island?
It’s a question many Rhode Island homeowners have right now — especially after the recent NAR settlement changed how real estate professionals can advertise and negotiate compensation. If you’re selling your home on your own in Warwick, East Greenwich, or anywhere in Central Rhode Island, it’s critical to understand how these new rules affect you, your buyers, and the agents involved.
Let’s break it down in plain language.
What the NAR Settlement Means for FSBO Sellers
The 2024 National Association of REALTORS® (NAR) settlement reshaped how professional service fees — what were traditionally called “commissions” — are handled and disclosed.
Before this change, it was common for listing agents to advertise compensation offers to buyer agents directly in the MLS. That practice is no longer allowed. Instead, compensation is now entirely negotiable and must be agreed upon outside the MLS, between the parties in the transaction.
For FSBO sellers in Rhode Island, that means:
You are not required to offer compensation to a buyer’s agent.
A buyer’s agent may still request that their client’s offer includes a request for you to contribute toward their professional service fee.
Any compensation agreement must be clearly stated in writing, typically within the Purchase and Sales Agreement (as governed by Rhode Island law and the Rhode Island Association of REALTORS®).
In other words, yes — you can ask the buyer to pay the agent’s fee, but there are nuances that matter.
Understanding Professional Service Fees (and Why Language Matters)
Under the RESPA (Real Estate Settlement Procedures Act) and Rhode Island’s Real Estate Commission guidelines, using the word “commission” can imply fixed or coordinated pricing — which is prohibited. The correct term is professional service fee, and it’s always negotiable.
Whether you’re a FSBO seller in Warwick or a homeowner in Cranston working directly with a buyer, every term — including who pays which fees — must be voluntarily agreed to by all parties.
Can You Ask the Buyer to Pay the Agent’s Fee? The Short Answer: Yes — With Conditions
Here’s how it typically works in a FSBO transaction:
You market your home directly — through Zillow, Facebook, or a yard sign — without an agent.
A buyer with an agent tours the property.
When that buyer submits an offer, their agent may include a request that the seller cover their fee (often a percentage or flat rate).
You can:
Accept the offer as written.
Negotiate by countering the price or adjusting the fee.
Decline to pay any portion of that agent’s fee.
The key: you cannot require the buyer to pay their agent’s fee outside of the purchase offer. It must be mutually agreed upon — and documented.
Example: A Warwick FSBO Seller Navigates Buyer-Agent Fees
Let’s say Susan, a homeowner in Warwick, decides to sell her single-family home FSBO. She lists the property on social media for $475,000 — right in line with the 2024 Warwick median sales price according to the RI Statewide MLS.
A buyer comes along, represented by a REALTOR®. The buyer’s offer is for $465,000, with a request that the seller contribute 2% of the purchase price toward the buyer agent’s professional service fee.
Here’s what Susan can do:
Accept the offer as-is, understanding that the fee comes out of her net proceeds.
Counter at full price ($475,000) and agree to pay the 2% fee.
Counter at $465,000 but specify that the buyer must cover their own agent’s fee.
Each scenario is legal and negotiable — but the difference lies in how competitive her property is in today’s Central Rhode Island market.
How Market Conditions Influence FSBO Negotiations
According to the RI Statewide MLS Annual Report (2024), Rhode Island’s single-family market remains strong with:
A median sale price of $475,000, up 11.76% from 2023
Average days on market around 31 days
Homes still selling at 100% of list price statewide
This means buyer demand remains high — especially in Warwick, Cranston, and East Greenwich — but affordability pressures are growing. Buyers may already be stretching financially just to secure a mortgage, making it harder for them to absorb additional costs like agent fees.
In practice, that can make a FSBO listing less attractive if you refuse to contribute to the buyer’s agent’s compensation.
How Buyer-Agent Compensation Is Now Presented
In Rhode Island, all agreements must be transparent and in writing. Under the new structure:
Buyers hire their agents directly. Their agreement outlines how the agent will be paid — whether by the buyer, the seller, or a combination of both.
If the buyer’s offer requests that the seller cover all or part of that fee, you can accept, reject, or counter it.
You cannot advertise a pre-offered fee to buyer agents in the MLS or on public listings.
Transparency is key. The buyer must know how their agent is being paid before making an offer.
Legal and Ethical Boundaries to Keep in Mind
To stay compliant with Fair Housing, RESPA, and Rhode Island real estate law, keep these principles in mind:
No fixed rates: You cannot set or promote a “standard” commission or fee. Every service fee is negotiable.
Equal treatment: Never discriminate against buyers based on protected classes when negotiating fees or offers.
Written agreements only: All compensation details must be in writing — verbal promises or “handshake deals” are not enforceable.
No side payments: All funds must be disclosed on the settlement statement (HUD-1 or Closing Disclosure).
Why Many FSBO Sellers Still Partner With a REALTOR®
Even though FSBO sellers can negotiate compensation directly, many realize the complexities go far beyond setting a price.
When you sell on your own, you’re responsible for:
Drafting and reviewing the Purchase and Sales Agreement
Managing showings and offers
Navigating inspections, appraisals, and title work
Understanding new compensation disclosure rules
Handling buyer-agent negotiations fairly and legally
Without a licensed REALTOR®’s guidance, these details can lead to costly mistakes or disputes — especially when multiple offers involve differing terms on professional service fees.
That’s why sellers across Warwick, East Greenwich, Cranston, and North Kingstown often choose to consult Nick Slocum or one of The Slocum Home Team’s top agents even before listing FSBO. A short conversation can save time, stress, and potential liability later.
What to Do If a Buyer Refuses to Pay Their Agent’s Fee
If a buyer insists their offer depends on you paying their agent’s fee, evaluate:
Market competitiveness: If your home has high demand, you can decline and wait for another buyer.
Net proceeds: Run the numbers with your attorney or agent to determine your true net.
Negotiation leverage: Sometimes, agreeing to a partial contribution keeps the deal alive while protecting your bottom line.
Every FSBO situation is unique — but the process works best when both parties understand the new, transparent structure of compensation.
A Word on Representation and Fairness
Rhode Island law allows buyers, sellers, and agents to decide how they’ll be represented:
Transaction Facilitator: No representation — the licensee assists both sides with paperwork only.
Designated Client Representative: The agent represents one party’s interests fully.
Neutral Dual Facilitator: Not allowed under Slocum’s office policy for ethical reasons.
These distinctions matter when discussing fees. Make sure you know who represents whom, and where your fiduciary protections begin and end.
The Bottom Line
Yes — you can ask the buyer to cover their agent’s fee in a Rhode Island FSBO deal.
But like every part of a real estate transaction, it’s negotiable, complex, and highly situational.
With the 2024 NAR settlement reshaping compensation transparency, Rhode Island sellers should approach every offer with clarity and professionalism. Working with a trusted local expert ensures you understand every number, every clause, and every potential outcome before signing.
Built to Last. Built for You. Count on It.
At The Slocum Home Team powered by eXp Realty, we believe every home sale — FSBO or otherwise — deserves a professional who answers the phone, serves you straight, and puts your interests first.
If you’re considering selling your home in Warwick, Cranston, East Greenwich, or anywhere in Central Rhode Island, our team can help you navigate these new rules with confidence.
