The recent National Association of Realtors (NAR) settlement marks a significant
shift in the real estate landscape, especially regarding transparency around agent
commissions. As of August 2024, the settlement impacts how agents, buyers, and
sellers handle compensation, particularly in NAR-affiliated MLS systems.
One of the major changes is that listing agents are no longer required to offer
buyer agent commissions in MLS listings. While this was previously standard,
sellers now have more flexibility in determining compensation, and buyers must
sign agreements detailing agent fees before home tours. This move aims to make
commissions more transparent and negotiable, which has led to a shift in how
agents and sellers approach fee negotiations.
For buyers, this means being more involved in discussions about agent fees from
the outset. Sellers, particularly in competitive markets, may now be more selective
about how much commission they offer, leading to more price-based negotiations
These changes reflect a broader trend toward making the home-buying process
more transparent, but they also increase the complexity of real estate
transactions, especially for agents who must navigate these new rules. This
evolving landscape will likely continue to impact commission structures and
negotiations moving forward.
How the Recent NAR Settlement is Reshaping Real Estate Commissions and Transactions
