The NAR Settlement: What Sellers Need to Know in 2025 (And Why Buyer Agent Commissions Still Matter)

Rod Moser, Your Real Estate Resource for Life

5 February 2025

The August 2024 Shake-Up: A Quick Recap

In August 2024, the real estate industry underwent its biggest transformation in decades with the National Association of Realtors (NAR) settlement. If you’re a seller, you’ve likely heard whispers (or outright panic) about “the end of buyer agent commissions.” Let’s set the record straight: buyer agent commissions didn’t disappear—they just evolved. Smart sellers recognize that offering compensation to buyer agents remains a strategic tool to attract buyers and close deals faster. Here’s what’s changed, what hasn’t, and how to navigate this new landscape like a pro.

Key Changes from the NAR Settlement

The settlement introduced three major shifts on August 17, 2024:

1. No More Commission Offers on MLS

Gone are the days when sellers could advertise buyer agent commissions directly on the Multiple Listing Service (MLS). This field has been removed to avoid the perception of “fixed rates”.
But here’s the twist: Sellers can still offer contributions towards Buyer Agent Commissions off-MLS through direct conversations, or seller concessions.

2. Mandatory Buyer Representation Agreements

Buyers must now sign a written agreement with their agent before touring homes. This agreement specifies how much the agent will be paid. Eighty percent of the Purchase Contracts include the amount asking the seller to contribute towards the fee.
Why this matters for sellers: Buyers are now more aware of agent costs, which means they’ll factor commissions into their budget—and ask sellers to help cover them by building it into the offer.

3. Shift in Commission Responsibility

Pre-settlement, sellers typically covered both the listing agent’s and buyer agent’s fees (averaging 5-6% total). Now, sellers are no longer required to pay buyer agent commissions.
But wait: Over 80% of listings still include buyer agent incentives, according to industry experts. Why? Because it works.

Why Offering Buyer Agent Commissions Still Wins Deals

Let’s cut through the noise: offering buyer agent commissions isn’t dead—it’s a power move. Here’s why savvy sellers continue to embrace it:

1. Your Home Gets Priority Attention

Buyer agents are inundated with properties. If your listing includes a commission offer, agents are more likely to:

Promote your home aggressively.

Schedule showings faster.

Push buyers toward your property over non-commission listings.

Example: A 2025 study found that homes offering buyer agent commissions sold 17% faster than those that didn’t.

2. Buyers Have Less Cash to Burn

With rising mortgage rates and down payment requirements, most buyers can’t afford to pay their agent out of pocket. By offering a commission, you:

Reduce the buyer’s upfront costs.

Make your home more financially accessible.

3. It’s a Negotiation Tool (Not a Cost)

Think of buyer agent commissions as part of your pricing strategy:

Add it to your asking price: List at $505,000 instead of $500,000 to cover a 3% commission.
Use seller concessions: Offer closing cost credits that buyers can allocate toward commissions

How to Structure Buyer Agent Commissions Post-Settlement

Flexibility is key. Here are proven strategies from top agents (including yours truly):

Debunking the Myths

Let’s tackle common misconceptions head-on:

Myth: “Sellers save money by skipping commissions.”

Reality: Homes without commission offers often sell for 3-5% less to compensate for buyer affordability gaps.

Myth: “Buyers will negotiate harder if I offer a commission.”

Reality: Clear incentives reduce haggling. Buyers focus on price, not hidden fees.

Myth: “Agents will avoid my listing.”

Reality: Agents prioritize homes that respect their value. No commission = fewer showings.

The Bottom Line for Sellers

The NAR settlement didn’t kill buyer agent commissions—it just made them more transparent. By offering compensation, you:

Attract more qualified buyers.

Stand out in a crowded market.

Maintain control over your sale timeline.

As my partner Melody always says: “A well-incentivized buyer agent is your best marketer.”

Ready to Sell Smart? Let’s Talk

At NextHome Navigator we’ve helped dozens of sellers navigate post-settlement deals with confidence. Whether you’re listing next week or next year, we’ll craft a commission strategy that maximizes your profit and minimizes headaches.

Contact us. Let’s turn this new era of real estate into your advantage.

P.S. For more tips, check out our YouTube channel @rodandmelody, where we break down commission strategies in under 5 minutes!

Sellers & Commissions