Selling Property After the NAR Settlement: Understanding Your Options

June 8, 2026| sherwoodre| 0 Comment| 6:09 pm

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If you’ve been following real estate news, you’ve likely heard about the National Association of Realtors® (NAR) lawsuit and settlement that has changed some long-standing practices in the real estate industry. As a seller, it’s important to understand what has changed, what has stayed the same, and how these changes may affect the sale of your home.

First, What Was the NAR Lawsuit About?

The lawsuit focused on how buyer-agent compensation was handled and communicated within the real estate industry. While real estate commissions have always been negotiable, the plaintiffs argued that many consumers were not clearly informed of that fact. The resulting settlement led to new rules designed to provide greater transparency regarding agent compensation and ensure consumers have a better understanding of their options.

What Has Changed for Sellers?

Prior to the settlement, sellers often offered compensation to a buyer’s agent through the Multiple Listing Service (MLS). While offering buyer-agent compensation was common, it created the perception for many consumers that it was required. Today, the biggest changes are:

Sellers are responsible only for the compensation agreed upon with their own listing agent.
Listing brokers can no longer advertise offers of buyer-agent compensation in the MLS.
Offering compensation to a buyer’s agent is entirely optional.
Any contribution toward a buyer’s agent’s fee is now negotiated separately as part of the transaction.

In short, sellers have more flexibility and control over how buyer-agent compensation is handled.

What Hasn’t Changed?

Real estate remains a negotiation. Although compensation can no longer be advertised through the MLS, sellers can still choose to offer compensation to a buyer’s agent if they wish. Buyers can also request that a seller contribute toward their agent’s compensation as part of their purchase offer. Just because compensation is no longer displayed in the MLS does not mean it has disappeared from real estate transactions. It simply means those conversations now occur directly between the parties involved.

Why Would a Seller Consider Offering Buyer-Agent Compensation?

This is one of the most common questions sellers are asking today. Buyer agents continue to play an important role in helping buyers find homes, understand market conditions, negotiate offers, coordinate inspections, and navigate the transaction from contract to closing. Another important change resulting from the settlement is that buyers are now required to sign written buyer representation agreements before touring homes. These agreements specify how the buyer’s agent will be compensated. As a result, some buyers may need to pay their agent directly if the seller does not contribute toward that expense. For certain buyers—especially first-time buyers—this can create an additional financial hurdle on top of their down payment, closing costs, and moving expenses. Because of this, many sellers continue to offer some level of buyer-agent compensation to make their property more attractive and accessible to a larger pool of buyers.

How Does This Affect Your Selling Strategy?

Every property, market, and seller situation is different. In some cases, offering buyer-agent compensation may help attract more interest and encourage stronger offers. In other situations, a seller may choose not to offer compensation initially and instead negotiate it only if requested by a buyer. For example, some sellers choose to offer a percentage toward buyer-agent compensation at the time their property is listed, while retaining the flexibility to negotiate further if necessary when offers are received. The key is understanding that you now have options.

Transparency Has Always Been Important

At our agency, we have always believed that commission should be openly discussed and negotiated based on each client’s goals and circumstances. Long before the settlement, we made it a practice to explain compensation options and help sellers understand the choices available to them. The recent changes reinforce what we have always believed: informed clients make better decisions.

The Bottom Line

The NAR settlement did not eliminate commissions or buyer agents. Instead, it created greater transparency around how compensation is discussed and negotiated. As a seller, you now have more flexibility regarding whether and how much to contribute toward buyer-agent compensation. While offering compensation is no longer required or advertised in the MLS, many sellers still choose to do so because it can help attract buyers and strengthen the marketability of their property. The best approach depends on your goals, your property, and current market conditions. Working with an experienced real estate professional can help you evaluate your options and develop a strategy that positions your home for success. If you’re considering selling and would like to discuss how these changes may affect your specific situation, we’d be happy to walk you through your options and help you create a plan that works best for you.

Selling Property After the NAR Settlement: Understanding Your Options

First, What Was the NAR Lawsuit About?

What Has Changed for Sellers?

What Hasn’t Changed?

Why Would a Seller Consider Offering Buyer-Agent Compensation?

How Does This Affect Your Selling Strategy?

Transparency Has Always Been Important

The Bottom Line

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