The NAR Settlement is Final — Here’s Where Things Stand
In March 2024, the National Association of Realtors (NAR) reached a proposed settlement resolving a group of class-action antitrust lawsuits accusing the real estate industry of unfair commission practices. That settlement received final court approval, and the new practice rules have now been in effect since August 17, 2024 — more than a year and a half at this point.
The Settlement’s Rule Changes, in Brief
Sellers are no longer required to pay a commission to the buyer’s agent. Traditionally, sellers paid the buyer’s agent commission by sharing the commission paid to their own broker, with that offer of compensation posted in the Multiple Listing Service (MLS). That practice — broker-to-broker compensation listed in the MLS — has ended. Sellers may still choose to offer buyer-agent compensation and, as discussed below, many continue to do so.
Listing brokers can no longer offer buyer-agent compensation through the MLS. Compensation can still be posted on a listing broker’s own website, in fliers, or in other non-MLS materials.
Buyers must sign a written agreement with an agent before that agent can show them a property listed on the MLS. The agreement must spell out the compensation amount or rate the agent will receive and how it will be determined. In practice, this means the buyer is agreeing to pay their agent’s commission if the seller doesn’t.
Buyers and sellers must be notified in writing that commissions are negotiable and not set by law. This was always true, but it’s now a required, explicit disclosure.
Who Pays the Buyer’s Agent Now?
It can be the seller, the buyer, or a combination of both:
- The seller can pay the buyer’s broker directly through escrow.
- The buyer can pay their agent directly.
- Buyer and seller can split the cost.
Some buyers, hoping to avoid paying a commission out of pocket, have considered going without agent representation altogether. As we discuss here, that can be a costly mistake, especially for anyone buying a multi-million-dollar home, as is typical in Marin. A dedicated, experienced buyer’s agent protects you from the many things that can go wrong in a complex transaction.
Options for sellers
Sellers still have full control over:
- The commission paid to their own listing agent at close of sale.
- Whether and how much to offer the buyer’s agent at close, paid directly or through their own agent.
These amounts remain negotiable and must be spelled out in a written contract.
What National Data Actually Shows
More than a year into the new rules, the numbers haven’t played out the way some predicted. Nationally, total average commissions haven’t dropped. They have increased slightly, and buyer’s agent compensation specifically has followed the same pattern rather than shrinking. Discount and flat-fee brokerages haven’t meaningfully gained market share; their share of listings looks similar to what it was before the rules changed.
The Current Situation in Marin County
In Marin County, we haven’t seen the settlement produce a meaningful shift in either Realtor commissions or home prices. That tracks with the national pattern. Home prices here continue to be driven primarily by supply and demand: inventory remains limited, demand remains strong, and that combination keeps prices elevated regardless of how commissions are structured or disclosed. We don’t expect that to change.
What has changed is process and paperwork. Buyers now sign representation agreements up front, and commission terms are more explicitly disclosed and negotiated, but the underlying value that agents provide, and what most Marin buyers and sellers are willing to pay for, has remained largely the same.
What Has Not Changed
- Knowledgeable, experienced buyers’ agents still bring well-qualified, well-informed buyers to sellers’ properties. Compensating a buyer’s agent for months or years of work continues to pay off for both sides of the transaction.
- Buyers’ agents still do the complex work of helping buyers find, evaluate, and compete for homes that meet their needs — protecting buyers’ investments through careful evaluation, matching homes to financial ability, negotiating offers, and steering escrows to a successful purchase.
- Listing contracts in Marin (and throughout California) have always stated that commissions are negotiable.
- Brokers still rely on the MLS and the other sites that pull from it, like Zillow to market properties for sale.
- Madeline Schaider Real Estate remains committed to getting the best possible outcome for our clients, whether buying or selling.
What Buyers’ Agents Contribute
Read this blog post to learn more about the value a dedicated buyer’s agent brings to protecting you in your next home purchase in Marin.