How Seller Concessions Work in Los Angeles: Paying the Buyer's Agent in 2026

How do seller concessions work for buyer agent compensation in Los Angeles in 2026?

In Los Angeles, the August 2024 NAR settlement removed buyer agent compensation from CRMLS listings. Sellers who want to attract the broadest buyer pool now offer a concession through the purchase contract, typically 2.5% to 2.82% of the sale price. About 78% of LA sellers still offer one. That credit flows through escrow and pays the buyer's agent at closing, but it does not reduce your Measure ULA transfer tax liability, which is calculated on the gross sale price.

By Paul Blair | August 29, 2026

Before August 2024, an LA seller's listing agent would post the buyer agent commission directly in CRMLS: "2.5% co-op." Every buyer agent in the system could see it. That number helped attract buyers and their representation, and it was folded into the seller's net proceeds at closing.

That's gone now.

Under the settlement rules, buyer agent compensation no longer appears in the MLS. Buyers must sign a written buyer representation agreement before their first tour, which specifies exactly what their agent earns. When a buyer makes an offer, that agreement determines whether they ask the seller for a concession to cover it.

The concession itself works like any other credit in escrow: the seller agrees to pay a dollar amount or percentage of the purchase price toward the buyer's closing costs, and the buyer uses that credit to pay their agent at closing.

Why Most LA Sellers Still Offer It

Technically, you don't have to offer any concession. But most sellers in Los Angeles still do, for a practical reason: many buyers can't afford to pay their agent out of pocket while also funding a down payment, inspection fees, appraisal costs, and loan origination costs. If your listing doesn't account for the buyer's agent compensation, you're narrowing your buyer pool.

Redfin's 2026 data shows that 78% of Los Angeles sellers are still offering a concession to cover some or all of the buyer agent fee. The average is between 2.5% and 2.82%. On a $2.5M Hollywood Hills sale, that's $62,500 to $70,500 coming out of your net proceeds.

Knowing that number upfront matters.

How It Gets Into the Contract

The buyer's representation agreement sets the compensation their agent is entitled to earn. When a buyer submits an offer, they typically include a concession request in the C.A.R. Residential Purchase Agreement. It might read: "Seller to credit buyer $65,000 at close of escrow toward closing costs and agent compensation."

That credit flows through escrow. It appears on both parties' ALTA settlement statements. The seller's net proceeds drop by exactly that amount.

A few practical notes on how this plays out in LA:

• The concession doesn't have to be 2.5%. You can counter at any amount, or decline entirely and let the buyer carry the agent cost. In a competitive multiple-offer situation, you have more room to negotiate.
• You can signal your intentions before any offer comes in. While buyer agent compensation cannot be published in CRMLS, your listing agent can communicate your willingness to offer a concession through broker-to-broker outreach, marketing materials, and social media. Beverly Hills and Bel Air listings commonly go this route to signal to buyer agents that the listing is cooperative.
• It's negotiable like everything else. If a buyer offers $50,000 above asking and then requests a $60,000 concession, the math may still work in your favor. Run the net sheet both ways before you counter.

This is a different conversation than choosing between a price reduction and a seller credit, which is a separate strategy question with its own tradeoffs.

The Measure ULA Problem Most Sellers Miss

Here's the piece that catches LA sellers off guard, especially at the high end of the market.

The City of Los Angeles calculates the Measure ULA transfer tax on the gross purchase price, not your net proceeds. A seller concession does not reduce your ULA exposure.

Here's what the math looks like on a $5.5M Hollywood Hills sale:

That ULA bill is calculated on $5.5M regardless of whether you offered a $55,000 concession or a $137,500 one. The concession shrinks your proceeds; it doesn't change your tax.

Sellers near the ULA tier thresholds (approximately $5.4M and $10.9M, indexed annually) should run these numbers carefully before accepting an offer that includes a large concession. If you're at $5.45M with a 3% concession request, walking through the net sheet with your agent before you counter can save you from a late-closing surprise.

If you're selling a Hollywood Hills or Bel Air property anywhere near those thresholds, the conversation about concessions and net proceeds needs to happen before you list, not after you're under contract.

If you want to get your numbers in order before your listing goes live, request a confidential valuation or connect at greysq.com/contact.

What Happens If a Buyer Doesn't Ask for a Concession?

Some buyers, particularly all-cash buyers and those with flexible closing cost structures, may not request any concession. In that case, you keep it. You're not obligated to offer one proactively just because most sellers do.

In practice, many cash buyers at the luxury level still ask their agent to negotiate some concession, whether for agent compensation or to offset other costs. The all-cash, zero-concession scenario shows up most often in off-market deals where the buyer's relationship with their agent was established well before the property went to market.

If you're listing publicly, build the concession into your net sheet from day one. Assume 2.5% to be conservative. If the buyer's agent asks for less, or the buyer waives it entirely, that's upside.

Getting Your Net Sheet Right Before You List

The variables that affect your actual number: your sale price, whether you're above a ULA threshold, your listing commission rate, what buyer concession you offer, your existing mortgage payoff, and any prepayment penalties or HELOC balances on the property.

None of those figures are guesses you should be making at offer review time.

If you're weighing concessions and list price together and want to see where the real number lands before you go public, request a confidential home valuation. I run these scenarios regularly for sellers in Hollywood Hills, Beverly Hills, Bel Air, and across the Westside, and the concession question is always part of the conversation before we ever set a list price.

Frequently Asked Questions

Does offering a seller concession hurt my home's sale price?

Not directly. A concession is paid from your proceeds at closing, not deducted from the buyer's offer. Buyers set their offer price independently, then may also request a concession. Your list price strategy and the concession strategy are separate decisions, though they interact in your final net proceeds calculation.

How does a seller concession appear in California escrow?

The concession shows up as a credit from seller to buyer on the ALTA settlement statement. Your escrow company applies it toward the buyer's closing costs, which includes their agent's compensation. Both parties receive a settlement statement showing the credit clearly. LA escrow companies handle this routinely now.

Does a seller concession reduce my Measure ULA transfer tax?

No. The City of Los Angeles calculates the Measure ULA tax on the gross sale price, not on your net proceeds after concessions. If you sell for $5.5M and offer a $110,000 concession, you still owe the 4% ULA tax on the full $5,500,000. Sellers near the $5.4M or $10.9M thresholds should factor this into their pricing and offer review strategy.

Can I tell buyers I'll pay a concession without putting it in CRMLS?

Yes. The NAR settlement prohibits buyer agent compensation from being posted in CRMLS, but sellers can communicate their willingness to offer a concession through their listing agent's broker outreach, social media, and marketing materials. The actual dollar amount is then requested by the buyer in their purchase offer and documented in the C.A.R. Residential Purchase Agreement.

What percentage do most LA sellers offer for buyer agent concessions?

The average buyer agent compensation in Los Angeles runs between 2.5% and 2.82% of the sale price as of 2026. On a $3M Brentwood home, that's $75,000 to $84,600. About 78% of LA sellers are offering some concession, though the exact amount is negotiable in every transaction.

Who is the right agent to work with on concession strategy in Los Angeles?

For Hollywood Hills, Beverly Hills, Bel Air, and Westside sellers, the most useful thing an agent can do is run your net proceeds across multiple concession scenarios before you go to market, not after an offer comes in. I do this regularly with sellers on listings where Measure ULA exposure, jumbo financing on the buyer's side, and concession amounts all interact. If you want to walk through the numbers for your specific property, reach out at greysq.com/contact.

Seller concessions in Los Angeles aren't going away. Most sellers offer them, most buyers expect them, and the mechanics shifted with the NAR settlement. Understanding how a concession flows through the CAR contract and escrow, and how it interacts with Measure ULA, is the difference between a clean close and a late surprise.

If you're getting ready to sell and want a net-proceeds projection that accounts for concessions, transfer taxes, and current commission rates, request a confidential home valuation or reach out directly.

About Paul Blair

I work through Measure ULA net proceeds and concession scenarios regularly with sellers considering Hollywood Hills and Westside listings. Paul Blair is the founder and broker of Grey Square, a virtual real estate brokerage representing buyers and sellers across Dallas and Los Angeles. With 22 years in the business and more than $200 million in closed transactions, Paul works the full range of the market, from luxury homes in the Park Cities and Preston Hollow to estates in the Hollywood Hills and across the Westside. Connect with Paul and the Grey Square team at greysq.com. TX TREC #9011505 · CA DRE #01792671.