What is the NAR settlement?
It is the resolution of a group of antitrust lawsuits over how real estate commissions were set and shared. The National Association of Realtors agreed to pay $418 million and, more importantly for buyers and sellers, to change long-standing industry practices around how buyer-agent compensation is offered and disclosed.
The headline dollar figure gets the attention, but the practice changes are what actually affect your transaction. Those took effect on August 17, 2024.
What changed for buyers on August 17, 2024?
Two practice changes matter most if you are buying a home:
- Offers of compensation to the buyer's agent can no longer be advertised in the Multiple Listing Service (MLS). The old practice of a listing publishing what the buyer's agent would be paid is gone.
- A buyer working with an MLS-participating agent signs a written buyer agreement before touring a home, and that agreement discloses how the agent is paid.
Why do you sign a written agreement before touring now?
Because compensation is no longer posted in the MLS, the rule moves that conversation into a written agreement between you and your agent, up front. The agreement spells out the services the agent provides and the fee you have agreed to, before you start touring homes together.
This is a good thing for buyers who read it. You see the fee in writing, you can negotiate the terms and the length, and there are no surprises later. Read it before you sign, and ask about anything unclear. You do not need an agreement just to attend an open house or to interview an agent about their services.
Are commissions cheaper now?
Not dramatically, at least not yet. There has never been a standard or legally set commission rate; commissions have always been negotiable, and the settlement makes that explicit. But in practice, through 2025, buyer-agent compensation has largely held near pre-settlement levels, with averages reported around 2.4 percent to 2.5 percent, and combined buyer-and-seller commissions have stayed in the mid-5 percent range.
What changed is transparency and leverage, not an automatic discount. You can negotiate your agent's fee, and you should treat it as negotiable rather than fixed.
Go deeper: How Real Estate Commission Works .
Who pays the buyer's agent now?
It depends on what gets negotiated. Sellers can still offer to cover the buyer's agent fee as a concession, and many continue to, especially on entry-level homes, because it helps attract buyers. What changed is that this is no longer assumed or advertised in the listing.
So the buyer agreement now matters more. It states what your agent is owed and what you would be responsible for if the seller does not cover it. Clarify that in writing early, and your agent can ask for seller-paid compensation as part of your offer.
What does the settlement mean for you as a buyer?
Practically, three things. Interview agents and treat the fee as negotiable. Read the written buyer agreement before you sign it, including the term and what you owe if the seller does not cover the fee. And get pre-approved first, so you negotiate from the position of a ready, serious buyer.
Key terms, quickly defined
- NAR (National Association of Realtors)
- The largest U.S. trade association for real estate agents, whose 2024 settlement of antitrust claims drove the commission practice changes.
- Buyer-broker agreement
- The written contract, required before touring since August 2024, that sets a buyer's agent's services and how the agent is paid.
- MLS (Multiple Listing Service)
- The regional databases agents use to list and find homes. Offers of buyer-agent compensation can no longer be advertised there.
- Cooperative compensation
- Compensation a listing side offers to the agent who brings the buyer. Since the settlement it can no longer be advertised in the MLS, though it can still be negotiated.
- Seller concession
- An amount a seller agrees to pay toward the buyer's costs, which can include the buyer's agent fee, negotiated as part of the offer.
- Dual agency
- One agent or brokerage representing both buyer and seller; allowed in some states, restricted in others, and always disclosed.
Frequently asked questions
More in this series
How to Choose a Real Estate Agent
The pillar guide: what to look for, buyer's agent vs listing agent, the 2024 rule change, red flags, and when to start.
Read guide →Questions to Ask a Real Estate Agent
The interview checklist: track record, communication, the buyer agreement, the fee, and references, before you sign.
Read guide →How Real Estate Commission Works
Who pays the agent, how compensation is negotiated after the settlement, and how it can show up in your transaction.
Read guide →