How the NAR Settlement Affects You as a Homebuyer or Seller in 2025

Introduction

The 2024 NAR settlement changed the way real estate commissions and buyer representation agreements work, and in 2025, these changes are affecting how buyers and sellers navigate the market. While some real estate agents are still discussing the settlement, the best ones have moved forward and are focusing on helping consumers like you make smart, informed decisions in this new landscape.

This article breaks down what the NAR settlement means for homebuyers and sellers, how it affects commissions, and what to look for in a Realtor to ensure you get the best deal possible.

1. What Changed and Why It Matters to You

The real estate market has always been competitive, but the changes brought by the NAR settlement have altered how commissions are handled and how buyers and sellers work with agents.

Here’s what changed and how it affects you:

Commissions Are Now Fully Negotiated Upfront

• Buyers must sign agreements with their agents before touring homes.
• Agents must clearly explain their commission before they begin working with you.
• Some sellers are choosing not to offer buyer agent commissions, which means buyers may have to pay their agent directly.

More Transparency in Fees and Services

• Before the settlement, most buyers didn’t even realize how their agent was paid. Now, everything is upfront.
• This means you can compare agent services and fees before committing to one.

More Flexibility in How You Work with Agents

• Buyers and sellers can now negotiate commissions in ways that best suit their needs.
• Some agents are offering tiered services, such as lower-cost options for buyers who only need basic guidance.

2. What This Means for Homebuyers

1. You May Need to Pay Your Agent Directly

Before the settlement, sellers almost always paid the buyer’s agent commission. Now, some sellers are no longer offering to pay buyer-agent fees, which means buyers may need to pay their own agent out of pocket or negotiate the cost into their offer.

?? What You Can Do:

• Ask your agent about their fees before you start house hunting.
• Negotiate the best commission structure for your budget.
• Look for sellers who are still offering buyer-agent compensation.

2. More Power in Choosing an Agent

Since you now have to agree on commission upfront, you have more control over who you work with. This means you should:

• Compare different agents based on experience, services, and fees.
• Look for an agent who explains their value clearly.
• Make sure your agent is helping you save money through expert negotiation.

3. The Risk of Going Without an Agent

Some buyers might be tempted to skip hiring an agent to save money, but this can be risky. A great agent helps you: ? Find hidden issues with a property. ? Negotiate a better price. ? Avoid costly contract mistakes. ? Access off-market properties.

3. What This Means for Home Sellers

1. More Control Over What You Pay in Commission

As a seller, you now have the flexibility to decide whether to offer buyer-agent compensation. While you’re not required to pay it, offering commission can still help attract more buyers.

?? What You Can Do:

• Work with your listing agent to determine whether offering a buyer-agent commission will help your home sell faster.
• Consider alternative seller incentives, like covering closing costs instead.

2. Stronger Negotiation Strategies Are Key

With commissions now more transparent, buyers are paying closer attention to their costs. That means sellers need to:

• Price their home competitively to attract serious buyers.
• Work with an agent who knows how to market and negotiate effectively.
• Offer value-driven incentives rather than just lowering the price.

3. Picking the Right Listing Agent Matters More Than Ever

Since buyers and sellers are paying closer attention to fees, your agent must prove their value. Look for an agent who:

• Has a strong marketing plan to get your home in front of the right buyers.
• Can negotiate in your favor while maintaining transparency.
• Understands how to attract buyers in the post-settlement market.

4. What to Look for in a Realtor in 2025

Whether you’re buying or selling, choosing the right agent is more important than ever. Here’s what to look for:

? 1. Someone Who Explains Their Commission Upfront

Good agents are transparent about their costs and explain what you get for your money.

? 2. A Strong Negotiator Who Saves You Money

A skilled agent will help you get the best deal and make sure you don’t overpay (or undersell).

? 3. A Market Expert Who Knows Pricing & Trends

Your agent should provide data-driven insights to help you make informed decisions.

? 4. Someone Who Offers Solutions, Not Just Excuses

Avoid agents who are stuck talking about the settlement. Instead, look for professionals who focus on:

• How to help you buy or sell in today’s market.
• Strategies to maximize your investment.

5. Final Thoughts: How to Win in the 2025 Market

The NAR settlement changed the industry, but it didn’t change the fact that you need a great Realtor to guide you through the process. Whether you’re buying or selling, the key to success is understanding your options, negotiating smartly, and choosing the right agent.

? Buyers should be aware of their agent’s fees and understand how to negotiate. ? Sellers should know that offering buyer-agent compensation can still help sell their home faster. ? Both buyers and sellers should work with an agent who focuses on results, not industry politics.

If you’re thinking about buying or selling, make sure you work with an agent who is focused on helping you succeed in this new market—because the best agents don’t just talk about change, they help you win despite it.