Utah FSBO: Do You Need to Offer a Buyer's Agent Commission?

One of the most common questions Utah FSBO sellers ask is: do I have to pay the buyer's agent commission? The answer changed significantly after the 2024 NAR settlement, but sellers in Salt Lake, Utah County, Davis, and Weber counties still face real pressure on this issue. Here's exactly what the law says, what buyers expect, and how to make the right call for your sale.

Photo by Tierra Mallorca on Unsplash

What the Law Actually Requires

Let's start with the plain truth: Utah law does not require you to pay a buyer's agent commission. There is no state statute mandating it. You can legally sell your home without offering any commission to a buyer's agent or any other third party.

Prior to August 2024, the NAR (National Association of Realtors) settlement changed longstanding MLS rules that effectively required sellers to offer a buyer's agent commission in MLS listings. Under the new rules:

• Sellers are not required to offer buyer's agent compensation through the MLS
• Buyer's agents must now have a signed Buyer Broker Agreement with their clients before showing homes
• Buyers and their agents negotiate compensation directly — it doesn't have to come from you

This is a significant shift. If you're listing FSBO in Utah today, you have more flexibility than sellers had even two years ago.

Why You Still Might Choose to Offer One

Even though it's optional, many Utah FSBO sellers decide to offer a buyer's agent commission — usually 2.5% to 3% of the purchase price. Here's why that might make sense for your situation:

More buyers see your home. Most buyers in Utah are still working with an agent. If you offer no compensation, some agents may steer their clients toward other listings — or at minimum, the buyer will have to pay their agent out of pocket, which affects their effective budget for your home.

You stay competitive. In a slow market or against comparable homes offered through full-service agents, offering buyer's agent compensation helps your listing compete. In a fast market (like Salt Lake County in 2021–2022), it mattered less. In 2024–2026, with rising inventory, it matters more again.

Buyers may simply ask. Even without a listed commission, nothing stops a buyer from submitting an offer that includes a request for seller-paid buyer's agent compensation. You'll likely see it in the offer or as a concession request. You can negotiate it like any other term.

How Buyer's Agent Compensation Works in a FSBO Sale

If a buyer comes to you with an agent, the commission question will come up in one of three ways:

1. Negotiated directly in the REPC: The buyer includes a line in their Utah Real Estate Purchase Contract (REPC) asking you to pay their agent's compensation as a seller concession. You can accept, counter, or decline — it's a negotiable term like price or closing date.

2. Built into the purchase price: A buyer's agent may advise their client to offer a higher purchase price while requesting a seller concession to cover agent compensation. The net to you is the same, but the gross numbers look different.

3. Paid by the buyer directly: Under the new NAR rules, buyers can pay their own agent out of pocket. Not all buyers have the cash for this — it's more common in higher price points or with investors.

What FSBO Sellers in Utah Are Actually Doing

Based on current Utah market practice, most FSBO sellers are taking one of two approaches:

Offering 2–2.5% upfront. This gets included in your listing description or communicated to buyers' agents directly. It reduces friction and keeps the pool of interested buyers as large as possible.

Offering nothing and negotiating case-by-case. This works best if your home is in high demand, you have a clear competitive advantage (location, price, condition), or you expect to find an unrepresented buyer (sometimes called a "direct buyer").

Both approaches are legally valid in Utah. The right choice depends on your market, your property, and your timeline. A home in a competitive Draper neighborhood will attract buyers regardless. A home in a rural Utah County area might need every advantage it can get.

What This Means for Your Net Proceeds

Run the numbers before you decide. If your home is priced at $450,000:

• Offering 2.5% buyer's agent commission = $11,250 out of your pocket at closing
• Offering nothing but ultimately negotiating 2% as a concession = $9,000 concession
• Buyer pays their own agent = $0 from you — but your buyer pool shrinks

When you look at your Utah FSBO closing costs in total — title fees, proration of taxes, recording costs — the buyer's agent commission is often the largest line item. Knowing your break-even point before you get an offer is essential.

The Bottom Line

You are not legally required to offer a buyer's agent commission when selling FSBO in Utah. The 2024 NAR settlement made this crystal clear. But you should make a deliberate, informed choice rather than defaulting in either direction.

If your home is competitive and buyer demand is strong, skip the upfront commission offer and negotiate it deal-by-deal. If your home needs every advantage or you want to keep the process simple, offering 2–2.5% upfront removes friction.

Either way, understand what you're paying for, and make sure your REPC handles the commission terms clearly and in writing so there are no surprises at closing.

Ready to get started? Tyler offers a free 15-minute consultation — schedule yours at utahfsbohelp.com/contact.