The NAR settlement increases transparency in real estate commissions, giving buyers and sellers more control and clarity over how agents are compensated.
What Does the NAR Settlement Mean for Me?
The recent National Association of Realtors (NAR) settlement from August 2024 has brought major attention to how real estate commissions are structured and communicated. For buyers and sellers alike, the key takeaway is greater transparency and flexibility in how agents are compensated.
What’s Changing
Traditionally, commissions were shared between the listing agent (representing the seller) and the buyer’s agent, often through the MLS. Under the new framework, these arrangements will be more openly discussed and negotiated, with clearer disclosure of who pays what and why.
In the past, the listing agent would negotiate the full commission to be paid by the seller and then split that commission with the buyer’s agent. Now, the listing agent negotiates only their own commission with the seller. The buyer then requests a credit from the seller in the purchase agreement to offset the commission they've agreed to pay their agent.
For sellers, this means the first time you’ll hear about paying a buyer’s agent commission may be in the purchase agreement itself.
For buyers, it means you’ll have a clearer understanding of how your agent is paid and can structure that compensation directly within your offer.
Watch My 2-Minute Video Explaining the New NAR Commission Rules
Why Transparency Helps
The goal of the settlement is to make fees easier to understand so clients know exactly what services they’re getting and what those services cost. Real estate professionals are expected to provide clear explanations about representation, value, and fees before clients sign any agreements.
What You Should Do Now
Ask your agent how they’re approaching commission discussions under the new rules. A good agent will:
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Explain your options clearly, whether you’re buying or selling
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Outline what services are included in their fee
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Help you understand how compensation affects offers and negotiations
In the San Francisco and Marin markets, where competition and nuance are high, understanding these details can make a real difference in your bottom line.
Curious how these changes affect your plans? Get in touch.
Oliver Burgelman
Realtor® | Vanguard Properties
📍 San Francisco & Marin County
📞 415-244-5846
