NAR Settlement: What Actually Changed for Buyers & Sellers
The $1.04B NAR antitrust settlement went into effect August 17, 2024. The mechanism for how buyer agent commissions work changed permanently — but commissions themselves didn't disappear. Here's what it means for your transaction in 2026.
📊 Settlement at a Glance
What Changed vs. What Didn't
The settlement is widely misunderstood. Most claims that "commissions are eliminated" are wrong.
🔴 What Changed
- MLS systems can no longer display or facilitate offers of buyer agent compensation
- Buyers must sign a written buyer-broker agreement (BBA) before a licensed agent shows them homes
- BBA must specify agent compensation clearly — buyers understand exactly what they're agreeing to pay
- Sellers no longer "advertise" buyer agent commissions on MLS — negotiations happen off-MLS
- Some sellers explicitly choose to offer $0 buyer agent commission — buyers must cover the difference if their agent charges more than $0
🟢 What Didn't Change
- Sellers can still voluntarily pay buyer agent commissions — most still do
- Average buyer agent commissions remain 2.43–2.55% nationally (marginal decline)
- No federal law sets or caps commission rates — they've always been negotiable
- Listing agent commissions (what sellers pay their own agent) — unchanged
- Buyer agents still represent buyers — the relationship exists, it's just formalized earlier
- First-time buyer programs and FHA/VA loans — unchanged; Fannie/Freddie confirmed buyer agent fees can be rolled into seller concessions
Settlement Timeline
Commission Data: Before vs. After Settlement
| Commission Type | Pre-Settlement (2023) | Post-Settlement (2025–2026) | Change |
|---|---|---|---|
| Buyer agent commission (avg) | 2.6–2.7% | 2.43–2.55% | ~0.15–0.2% decline |
| Listing agent commission (avg) | 2.5–3.0% | 2.5–3.0% | No material change |
| Total commission (both sides) | 5.1–5.7% | 4.9–5.5% | ~0.2% decline |
| % sellers paying buyer commission | ~95% | ~76–82% (varies by market) | Meaningful shift — some sellers choosing $0 |
Sources: Redfin Q2 2025 Commission Report, Mike DelPrete analysis, NAR 2025 Profile of Home Buyers and Sellers.
What Buyers and Sellers Should Do in 2026
🏠 For Sellers
- Decide your buyer agent compensation strategy before listing — offering 2–2.5% buyer agent commission still maximizes buyer pool access
- Work with your listing agent to handle off-MLS compensation negotiations — this is now standard practice
- If going FSBO, offering buyer agent compensation via the purchase contract (not MLS) is legal and standard post-settlement
- Use the AI Pricing Advisor to set competitive pricing — overpricing is more painful post-settlement as buyer agents may deprioritize non-cooperative listings
- If in an attorney state, have your listing agreement reviewed — compensation terms in all agreements are now more negotiated
🔑 For Buyers
- Expect to sign a buyer-broker agreement before your first showing — this is now federally mandated practice
- Negotiate the BBA: agent compensation, term length (avoid long lock-ins), and services included. 3-month agreements are reasonable; 12-month is too long without an out clause
- Understand what you owe if the seller pays $0 buyer commission — some sellers are doing this to attract investors or lower their cost basis
- Ask your lender if buyer agent fees can be rolled into seller concessions — Fannie Mae and Freddie Mac have confirmed this is allowed
- Consider using the AI Contract Risk Scorer on any purchase agreement before signing
Frequently Asked Questions
The National Association of Realtors settled the Sitzer/Burnett antitrust lawsuit for $1.04B+ in March 2024. Practice changes went into effect August 17, 2024. The lawsuit alleged NAR rules requiring sellers to offer buyer agent commissions through the MLS artificially inflated commissions and violated antitrust law. The settlement does not prevent sellers from offering buyer agent compensation — it just removes the MLS as the mechanism for broadcasting that offer.
Two changes: (1) MLS systems can no longer display buyer agent compensation offers — sellers negotiate compensation off-MLS, typically through purchase agreements. (2) Buyers must sign a written buyer-broker agreement (BBA) specifying compensation before a licensed buyer's agent shows them homes. The BBA must clearly state the agent's compensation amount and how it's paid.
No. Buyer agent commissions still exist and sellers still often pay them. Post-settlement data from Redfin shows average buyer agent commissions of 2.43–2.55% — down only modestly from pre-settlement levels (~2.6%). About 76–82% of sellers still pay buyer agent commissions in 2025–2026, just negotiated separately. The settlement changed the mechanism, not the practice.
A buyer-broker agreement (BBA) is a contract specifying what a buyer's agent will do, how they'll be compensated, and for how long. Since August 2024, buyers must sign one before an agent shows them homes. Key things to negotiate: compensation amount (try to negotiate to the lowest percentage you're comfortable with), term length (3 months is reasonable; avoid 12-month with no termination clause), and specific exclusion clauses if you find a property independently.