Settlement guide
The NAR settlement, explained
In August 2024, new rules changed how real estate commissions work across the country. Buyer agent fees are no longer listed on the MLS, and buyers must sign representation agreements before touring homes. Here's how to navigate it without overpaying.
Last updated March 2026
What happened
For decades, the National Association of Realtors maintained a rule requiring home sellers to offer compensation to the buyer's agent through the MLS as a condition of listing their property. This meant that when a home was listed for sale, the seller's agent would set a commission split (typically 2.5% to 3%) that would go to whoever brought the buyer. The buyer never negotiated this fee directly, and most buyers didn't realize they were indirectly paying it through the home price.
In October 2023, a Missouri jury found NAR and several major brokerages liable for artificially inflating these commissions. The jury awarded $1.78 billion in damages in the Sitzer/Burnett v. NAR case, one of the largest antitrust verdicts in recent history.
NAR settled in March 2024 for $418 million and agreed to two major rule changes that took effect on August 17, 2024:
- No more commission offers on the MLS. Sellers can still offer to pay the buyer's agent, but the amount can no longer be advertised through MLS listings. This decoupled the buyer agent fee from the listing process.
- Mandatory buyer representation agreements. Before an agent can show a buyer any property, the buyer must sign a written agreement specifying what the agent will be paid. No more informal touring with no commitment.
What changed for buyers
You must sign a buyer representation agreement
Before any agent can show you a home, you now sign a written agreement that states what services the agent will provide, how long the relationship lasts, and exactly what the agent will be paid. This can be a flat fee, a percentage, or an hourly rate. The agreement can be exclusive (one agent) or non-exclusive.
You have more leverage to negotiate agent fees
With commission no longer preset on the MLS, buyers can compare agent fees before committing. You can interview multiple agents, review their proposed compensation, and negotiate terms. National buyer agent commission dipped to 2.36% in Q3 2024, down from 2.55% pre-settlement, before stabilizing around 2.5% to 2.8% depending on market.
You might need to budget for your agent's fee
In most transactions, sellers still offer to cover the buyer agent fee. But it's no longer guaranteed. If a seller doesn't offer compensation, you may need to pay your agent directly or negotiate it into the purchase price. Your buyer representation agreement should address this scenario upfront.
Open houses work differently
You can still attend open houses without a buyer agent agreement. The listing agent hosts the open house and represents the seller. But if you want an agent to show you properties privately, you need a signed agreement first. This is a practical change: "just looking" with an agent now requires a written commitment.
What changed for sellers
You no longer set the buyer agent commission on the MLS
Previously, your listing agent would enter a buyer agent commission on the MLS (for example, 2.5%) as a condition of listing. That field is gone. You can still offer buyer agent compensation, but it's communicated off-MLS: through the listing description, agent-to-agent negotiation, or direct buyer requests.
Most sellers still offer buyer agent compensation
The settlement didn't ban paying the buyer's agent. In practice, most sellers continue to offer it because it widens the pool of interested buyers. A buyer who can't cover their agent's fee out of pocket may skip listings where no compensation is offered. Offering it remains a competitive strategy.
You have more room to negotiate total commission
With buyer agent fees decoupled from the listing, sellers can negotiate the listing agent's commission and the buyer agent offer separately. This gives you more transparency into where each dollar goes and the ability to adjust based on your local market conditions.
Timeline
October 2023
Jury verdict in Sitzer/Burnett v. NAR
A Missouri jury found NAR and several brokerages liable for inflating commissions, awarding $1.78 billion in damages. The verdict targeted NAR rules requiring listing brokers to offer compensation to buyer brokers through the MLS.
March 2024
NAR announces $418 million settlement
NAR agreed to pay $418 million and eliminate the Participation Rule that required sellers to offer buyer agent compensation on the MLS. The settlement also required buyers to enter written agreements with their agents before touring homes.
August 17, 2024
New rules take effect
MLS systems nationwide removed buyer agent commission fields. Buyer representation agreements became mandatory. The practical changes began rolling out across all markets.
Late 2024
Market adjusts
Average buyer agent commission dipped to 2.36% nationally as the market adjusted to new norms. Some sellers initially pulled back on offering buyer agent compensation, then resumed as listing activity slowed.
Early 2025
Rates recover
Commission rates followed a V-shaped recovery. Buyer agent rates climbed from their Q3 2024 low back toward pre-settlement levels. Most sellers continued offering buyer agent compensation off-MLS. California codified buyer representation agreements into state law.
January 2026
Eighth Circuit hears settlement appeal
The Eighth Circuit heard oral arguments on the Sitzer/Burnett settlement appeal. Objectors challenged the $418M amount and class definition. A decision is expected in late summer 2026. The practice changes remain in effect regardless of the outcome.
January 2026
NAR overhauls MLS rules
NAR enacted 18 policy updates to the MLS Handbook, the largest rewrite in 20 years. MLS participation no longer requires NAR membership, open listings are now permitted, and local MLSs gained control over service areas and governance. Texas buyer representation agreements also became state law.
How it affected commission rates
The settlement's impact on rates has been real but moderate. Total commission rates declined in most markets, with buyer agent rates seeing the largest shift. Here's how our covered states compare before and after.
| State | Pre-settlement | Current | Change |
|---|---|---|---|
| Alabama | 5.76% | 5.55% | -0.21% |
| Arizona | 5.72% | 5.48% | -0.24% |
| Colorado | 5.52% | 5.28% | -0.24% |
| Florida | 5.76% | 5.57% | -0.19% |
| Georgia | 5.84% | 5.66% | -0.18% |
| Idaho | 5.62% | 5.39% | -0.23% |
| North Carolina | 5.6% | 5.53% | -0.07% |
| South Carolina | 5.96% | 5.65% | -0.31% |
| Tennessee | 5.64% | 5.32% | -0.32% |
| Texas | 5.96% | 5.85% | -0.11% |
| Virginia | 5.44% | 5.19% | -0.25% |
| National average | 5.80% | 5.70% | −0.10% |
Rates are averages based on 2024 to 2025 transaction data. Source: Clever Real Estate agent survey, February 2026.
Calculate Your CommissionWhat this means for choosing an agent
The settlement shifted power toward consumers, but it also added complexity. The old system was opaque. The new system gives you more control, but only if you use it. Here's what to do with that leverage.
Interview before you sign
The buyer representation agreement is a commitment. Talk to two or three agents, compare their proposed fees, and understand what services are included before you sign. Ask specifically what happens if the seller doesn't offer buyer agent compensation.
Understand the fee structure
Some agents charge a flat percentage, others a flat fee or a hybrid. Know exactly what you're agreeing to, what triggers payment, and whether the fee is negotiable based on the sale price or time to close.
Check the agreement duration
Buyer representation agreements have an expiration date. Shorter terms (60 to 90 days) give you more flexibility. Avoid signing long-term exclusive agreements until you're confident in the agent.
Ask about transparency
If an agent won't explain how they're compensated, how they're selected for referrals, or what happens if you're unhappy, that tells you something. The settlement was about transparency. Your agent search should be too.
How we match you
Most referral platforms won't tell you how they pick agents or what they charge them. We think you should know both. Here's exactly how Agentsorted finds your agent in your area.
What we evaluate
Transaction volume
Is this agent actively closing deals? The top 20% of agents handle 65% of all transactions. We focus on agents working the market right now and consistently putting deals together.
Client reviews
We look for a consistent pattern of positive feedback across multiple platforms. One glowing testimonial is easy to get. A track record of 4.5+ stars across dozens of real clients isn't.
Response time
78% of buyers end up working with the first agent who responds, and the industry average response time is over 15 hours. Our agents contact you the same day. If they don't, we replace them.
Neighborhood expertise
An agent who knows your area well can spot pricing mistakes and negotiate from local knowledge that outsiders miss. We match on zip-code-level transaction history, not just a metro area.
Situation fit
Buying your first home is different from selling in a divorce or relocating for the military. We match you with agents who've closed deals in your specific situation, not just your zip code.
Most markets have thousands of licensed agents. We recommend the top 3%.
71% of licensed agents in the US didn't close a single deal last year. We start by removing them. Then we filter on closing record, reviews, response time, and local expertise. The rest never reach you.
How we make money
When your deal closes, the agent's brokerage pays us a 25% referral fee from their commission. On a $415,000 home at a 2.7% buyer agent commission, that's about $2,800 from the agent. You pay nothing.
| Platform | Referral fee | On $415K sale |
|---|---|---|
| Agentsorted | 25% | $2,801 |
| HomeLight | 33% | $3,698 |
| Zillow Flex | up to 40% | $4,482 |
| Most others | undisclosed | ? |
Based on 2.7% buyer agent commission. Only 40% of consumers know referral fees exist. We're telling you because you deserve to know where your agent's money goes.
What we don't do
- Agents can't pay for a higher ranking
- We never sell your contact information
- We don't send five agents racing to call you
- If your match isn't responsive, we replace them
Every platform in this space charges agents a referral fee. We're the only one that tells you about it upfront. That's the kind of company we want to be.
Frequently asked questions
Related resources
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