Making Sense of the New Commission Rules After the NAR Settlement

One of the biggest sources of confusion in real estate right now isn’t the interest rate. It’s this:

“With all these lawsuits and rule changes… who actually pays which Realtor anymore?”

In 2024, the National Association of REALTORS® (NAR) reached a major settlement that changed how commissions are handled and how they can be advertised on the MLS. National Association of REALTORS®+1

Those changes fully rolled into practice in 2024–2025 and have led to a wave of headlines, half-truths, and social media hot takes.

Let’s clean it up.

What Actually Changed?

Key practice changes include:

• Buyer’s agent commission can no longer be advertised on the MLS.

• Written buyer-broker agreements are now required before a buyer starts working with an agent. athomewithliz.com

• Commissions are negotiable, and how they’re structured can vary from deal to deal. National Association of REALTORS®+1

Despite all the noise, the average buyer’s agent commission so far hasn’t fallen off a cliff — it has stayed in roughly the same range since the new rules took effect. The MortgagePoint -+1

Top Commission & Representation Questions (Asked & Answered)

1. “Do buyers really have to pay their agent out of pocket now?”

Short answer: Not always — it depends how the deal is structured.

Under the new rules, the default assumption is that buyers are responsible for compensating their own agent, unless another arrangement is negotiated. In many cases, the seller may still agree to offer compensation to the buyer’s broker as part of the deal, or funds might be shifted around via concessions or price. Realtor

What’s different now is transparency:

• You and your agent need a written agreement spelling out how they get paid.

• You can see your cost clearly and negotiate it.

2. “Why do I have to sign a buyer’s agency agreement now?”

Because the rules require it — and honestly, it protects you as much as it protects the agent.

A buyer’s agency agreement should clearly explain:

• What your agent is responsible for.

• How they’re compensated.

• How long the agreement lasts.

• What happens if you buy a home off-market, new construction, etc. athomewithliz.com+1

If someone wants you to sign something you don’t understand, the problem isn’t the agreement — it’s the lack of explanation.

3. “Can I negotiate the commission?”

Yes.

Commissions have always been negotiable, and that hasn’t changed. The settlement just made the negotiation more obvious and direct.

You can discuss:

• Total commission.

• Flat fee vs. percentage.

• Different fee structures depending on price point or property type.

Your leverage will depend on your local market, your price range, and how much work is involved.

4. “Can my agent’s fee be rolled into the purchase so I’m not writing a separate big check?”

Often, yes — but it has to be structured properly.

Examples:

• The seller can offer concessions that effectively cover some or all of your agent’s fee.

• The purchase price can be negotiated with the commission structure in mind.

Lenders and appraisers still need the numbers to make sense, so you can’t just inflate the price without consequences. But there are ways to structure things so you’re not bringing a separate bag of cash just for your agent at closing — as long as everyone is upfront and the lender approves.

5. “If sellers aren’t ‘required’ to pay buyer’s agents anymore, do I even need an agent as a buyer?”

You don’t have to hire your own agent, but going unrepresented is almost always a bad idea — especially now that negotiations and paperwork are getting more complicated, not less.

A good buyer’s agent:

• Helps you understand pricing and value.

• Negotiates terms, repairs, and concessions.

• Keeps your interests first — not the seller’s.

Think of it this way: would you go into a legal dispute with only the other side’s attorney involved? Probably not.

6. “Is this good or bad for buyers and sellers overall?”

It’s a mixed bag:

• Good: More transparency. Clear contracts. More flexibility in how compensation is structured. Fitzpatrick Lentz & Bubba, P.C.+1

• Challenging: More confusion, more paperwork, and the possibility that some buyers may struggle to afford separate representation if costs can’t be wrapped into the deal.

The people who benefit the most are the ones who ask questions up front and choose professionals who take the time to explain everything.

How to Protect Yourself in the New Commission World

1. Ask your agent to walk you through the agreement line by line.

2. Clarify scenarios: new builds, FSBOs, off-market deals — who pays what in each situation?

3. Get everything in writing.

4. Focus on net numbers, not just fees. A strong agent may save you far more than they cost through negotiations, pricing strategy, and risk management.

The rules changed. The need for clear, honest representation didn’t.