What the National Association Realtors Settlement Means for Home Buyers and Sellers

Buying or selling a home is one of the biggest financial decisions you'll ever make. And understanding the costs involved—especially when it comes to real estate agent commissions—can feel overwhelming.

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The recent settlement between the National Association of Realtors (NAR) and the Department of Justice (DOJ) could change the way you approach this process, and, in many ways, it could empower you as a buyer or a seller.

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So, what does this settlement mean for you? And how can you take advantage of these changes? Let's break it down.

Background on the NAR Settlement

In May 2024, the Department of Justice (DOJ) brought a lawsuit against the National Association of Realtors (NAR).

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The core issue? Some real estate agents presented their services as free to home buyers, which wasn’t accurate. In reality, buyer agents earn a commission when a housing deal is closed.

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Unfortunately, some buyer agents were steering clients toward high-commission properties and away from properties offering low commissions—while presenting their services as free. Essentially, this strategy was anti-competitive and anti-free market.

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In August 2024, the new rules outlined in the NAR settlement agreement went into effect enforcing greater transparency on buyer agent commissions and prohibiting commission misrepresentation.

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Additionally, the new NAR policies banned restricting lockbox access to members of local Realtor associations and reevaluated Multiple Listing Service (MLS) rules to ensure more competition and prevent price-fixing.

Greater Transparency in Commission Fees

One of the biggest outcomes of the NAR settlement is transparency.

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In the past, real estate agents were paid through a commission, but this amount wasn’t always made clear to buyers. Typically, sellers paid the commission for both their agent and the buyer’s agent, and many buyers believed that their agent’s services were “free” as a result.

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But here’s the reality: that commission wasn’t free. It was baked into the price of the home—so in essence, buyers were still footing the bill. The new rules mean agents must be upfront about their commission rates, so buyers will know exactly what they’re paying for.

What the NAR Settlement Means for Home Buyers

If you’re buying a home, this transparency gives you more control.

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When you sit down with your buyer’s agent, you’ll know what they charge for their services. This is your chance to shop around—don’t feel pressured to go with the first agent you meet. You have the power to compare agents, not only based on their experience but also on how much they charge.

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You should negotiate your agent’s commission just like you negotiate the price of the home. That’s right—everything from hourly fees to flat rates to percentage-based commissions is on the table. It’s an opportunity to ask yourself: What am I getting for my money? And is it worth it?

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A great agent can provide immense value, from helping you navigate offers to negotiating repairs. But if their fee doesn’t match what they’re offering, you have the power to find someone who better fits your needs and budget.

What the NAR Settlement Means for Home Sellers

For sellers, the changes mean more flexibility in how you handle agent commissions.

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In the past, you were expected to offer a fixed commission (usually 3% to 6%) to the buyer’s agent on top of paying your own agent. Now it’s more apparent that you can negotiate how much you’re willing to pay, and you’re not locked into the “standard” rate.

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This shift can work in your favor. If you’re in a hot market, you might discover you don’t need to offer a high buyer’s agent commission to attract offers. On the flip side, if you’re selling in a competitive market, being strategic with your commissions could help you stand out.

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You also get more control over what you net from the sale. Since commissions are now up for negotiation, you can think about your bottom line and make decisions that work best for your financial goals.

The Bottom Line for Both Buyers and Sellers

If you’re a buyer, don’t shy away from negotiating. It’s now part of the process, and there’s no reason to pay more than you need to. Talk to multiple agents, ask about their fees, and choose someone whose service matches their price. The power is in your hands to decide what works for you.

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If you’re a seller, you have more control than ever before. Use that to your advantage! Work with your agent to figure out how to structure commissions that make sense for your situation—whether that’s paying less commission in a seller’s market or offering a bit more to attract the right buyer in a tougher market.

More Agent Competition Is Good for Consumers

These changes are ushering in a more competitive real estate market, which means agents will need to work harder to prove their value to you! That’s great news for consumers. Whether you’re buying or selling, you’ll have more choices—and more negotiating power—than ever before.

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It’s a new era of transparency, flexibility, and empowerment in real estate, and with the right knowledge, you can use it to your advantage. At the end of the day, a great agent is worth their weight in gold. Now, you’ll have the tools to make sure you’re getting the best value for your investment.

Your Next Steps

If you’re getting ready to buy or sell, now is the perfect time to have a conversation with your agent about what these changes mean for you. Ask questions, talk about fees, explore what services they can offer a la carte, and don’t be afraid to negotiate.

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You’re in the driver’s seat now, and the road ahead just got a little bit smoother. In fact, some consumers are choosing to do things differently. Two such examples are “for sale by owner” and a la carte agent services.

For Sale By Owner (FSBO)

Selling your home without the help of a real estate agent—commonly known as FSBO—can be a great way to save money on commissions. By going this route, sellers avoid paying the typical commission split between the buyer’s and seller’s agents, keeping more of the sale proceeds for themselves.

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Online listing platforms make it easy to attract interested buyers, schedule showings, and manage the marketing and negotiations on your own. Reverified can help you price your home with our Fair Deal Zone report. Setting the right price for your listing from the start can help you get the right return on your investment—and quickly! 

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While FSBO might save you money, it comes with its own set of challenges.

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Pricing your home correctly is crucial and without the guidance of an experienced agent, you run the risk of overpricing or underpricing, which can lead to longer times on the market or lost profits. That’s why it’s smart to use a tool like our Fair Deal Zone report to get impartial information on the best price range for your home.

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You’ll also need to handle all the legal paperwork, from writing contracts to managing disclosures, which can be daunting and full of potential pitfalls. Not to mention, the time and effort required to manage showings, negotiate offers, and oversee inspections can be overwhelming, especially if you’re not familiar with the process.

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FSBO can be rewarding but requires a significant investment of time, effort, and knowledge.

Shopping for A La Carte Services from Agents

Like the idea of doing it yourself without doing fully DIY? Shopping for a la carte services from agents offers a middle ground.

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Rather than hiring a full-service agent and paying a percentage-based commission, you can pick and choose the services you need—whether it’s help with pricing, marketing, contract reviews, or negotiations.

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These options give you professional guidance on the most challenging aspects of a transaction while keeping costs lower than a traditional commission. It’s a more flexible and customized approach that allows you to get the expertise you need without paying for services you don’t.

Empowering Home Buyers and Sellers Is a Good Thing

All in all, the NAR settlement puts more power into the hands of consumers through increased transparency and bargaining power. How you choose to use that power is up to you.

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Reverified can help you in your home buying or selling journey by providing price transparency and verification with our Fair Deal Zone report. Order your report today!