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What the NAR Settlement Means for Sellers in 2025

Home » What the NAR Settlement Means for Sellers in 2025
What the NAR Settlement Means for Sellers in 2025

For years, selling a house used to be like being drawn into a complex structure of hidden fees and commissions, particularly when it comes to real estate charges. Many sellers still believe the commission structures are fixed and unchangeable, leaving them with concerns if they are getting the best price. However, the best thing is that most of that traditional commission era is behind us, all thanks to the NAR settlement.

This latest agreement has completely changed the real estate market. And it seems sellers are coming out ahead. By getting a better understanding of these changes, sellers will take control of their house sale in 2025 and maybe save thousands of bucks by adhering to new regulations.

Key Changes You Need to Know as a Seller

The NAR settlement effective date, August 17, 2024, marks the implementation of three major changes to the luxury real estate industry.

No More Mandatory Buyer Agent Commission on the MLS    

Previously, sellers used to offer compensation to the buyer’s agent while listing their properties on the Multiple Listing Service (MLS). This is no longer the case with the NAR agreement. Commission offers will not be displayed by the MLS.

This clause clarifies that the buyer’s agent commission is not due from you. Since you will only be paying your listing agent commission, this will result in a cheaper overall commission for your deal. Though buyer’s agent remuneration cannot be offered on the MLS, you can still offer it off the MLS. Both brokers involved in a deal can negotiate it separately, with written consent for the precise sum.

Mandatory Buyer Representation Agreements

Before visiting properties, buyer agents must have a written agreement with their customers. The NAR settlement agreement has spelled out agent services and compensation in detail.

Although buyers are the ones who are most impacted by this agreement, there are repercussions. Buyers will be more informed and loyal to their agents. As part of your bargaining approach, chances are high that you may come across purchasers who ask sellers to make concessions (like a credit at closing) to cover up their agent costs.

Change in Commission Structure for Better Negotiation

The primary goal of these modifications is to encourage more candid commission negotiations. More specifically, you can negotiate the cost for your listing agent as well as the possible buyer’s agent fee. However, some listings still offer buyer incentives. But why? Because it somehow works that way.

With this agreement, you can have more direct and transparent conversations with your listing agent about fees. Don’t hesitate to inquire about their offerings and how their contribution adds to the value they offer.

Who Pays Now? Commission Splits After the NAR Settlement

With this settlement, offering buyer agent commission isn’t dead; it is still working but in a better way to win deals.

A significant decrease in hefty commission rates was one of the most immediate effects of the NAR settlement. The commission reality in 2025 is more complex, despite some early projections suggesting a 50% decline. Sellers believed that the settlement would bring total rates from 5-6% down to 2-3%.

Seller Agent Commissions:

You and your listing agent can still mutually discuss and agree on commission structure. Although there may be some downward pressure because of listing agents’ competition, it will still depend on the value they bring to the deal.

Buyer Agent Commissions:

The NAR settlement is explained thoroughly just to put major emphasis on buyer agent commissions. With no mandatory offers on the MLS, buyers are well informed that they might pay their agent directly. However, insights from early 2025 show that many sellers are still offering compensation to win deals, often in the range of 2-3%. Offering buyer agent commission can get your home priority attention and facilitate a quicker sale.

Total Commission Rates:

Some reports suggest a minor change in overall commission rates compared to pre-settlement deals, yet the market is highly dynamic. The exact impact of the NAR agreement varies by location, property type, and market conditions.

Strategic Considerations for Sellers in 2025

One concerning thing is that some sellers still aren’t aware of the NAR agreement and how they can navigate it to ensure compliance and improve their commission structure.

That’s why it’s more important than ever to work with an experienced agent. A listing agent who possesses a deeper understanding of the NAR settlement and its implications is essential. You are sure to find them at Redhead Home Properties. Our agents can guide you through the best practices for the local market, suggest pricing, and help you align with the latest negotiation dynamics.

Apart from just aligning with the NAR agreement, you need to adopt a personalized approach for your local market. What works in a seller-centric market might not be applicable in a buyer-centric market. Our agents provide localized insights to plan your property listing and negotiate with buyers.

As agents become more competitive, breaking down the value they bring to your deal is a better way to hire them. At Redhead Home Properties, our agents can articulate their marketing strategies, negotiation expertise, and how they will help you achieve your selling goals despite changing regulations.

How Much Is My Home Worth

To Offer or Not to Offer Buyer Commissions Off the MLS

Though we can discuss the perks of both situations with our sellers, the decision to offer or not to offer the buyer agent’s commission is still your choice.

By offering commission, you can attract a sizable number of qualified buyers to take care of your deal, leading to more competitive offers. Though it expedites the process, it is an additional cost to you. We suggest offering seller concessions like credits toward closing costs, which can attract buyers and help them get better compensation.

Prepare for the Future with Redhead Home Properties

The 2025 real estate market presents both opportunities and challenges. But the question is, are you prepared for them? Redhead Home Properties not only ensures compliance with the latest regulations but also provides the roadmap to secure more deals under the NAR guidelines.

The NAR settlement explained a drastic change toward the transparent and consumer-centric real estate market. As a seller, you should have immediate access to agents who can market your property effectively and settle on terms that work for you. Redhead Home Properties ensures service delivery with more clarity and flexibility, putting you in the driver’s seat.

Contact Us Today for a No-Obligation Call to Sell Faster in 2025!

Frequently Asked Questions

What is the NAR settlement, and why does it matter to sellers?

The NAR settlement is a $48 million agreement between the National Association of Realtors and several litigants. It changes how real estate commissions are paid, eliminating the need for sellers to offer compensation to buyer agents through MLS.

How do buyers typically pay their agents now?

Buyers are required to have a written agreement outlining their agent’s compensation. They can pay directly, or request seller credits as part of the purchase offer.

When did the NAR agreement go into effect?

The NAR settlement effective date was August 17, 2024. Since then, new rules have been applied to all real estate transactions listed on MLS platforms.

Can I save money on commissions in 2025?

The latest settlement creates the potential for savings due to increased negotiations. However, actual savings depend on your market, strategy, and whether you choose to offer any buyer agent incentives.

Can I still help pay my buyer’s agent commission?

While not on the MLS, you can negotiate directly with the buyer’s agent or offer concessions to help cover their fees, with your written approval.

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