The NAR Settlement
What changed, what it means, and what to do about it
Watch: The Truth About the NAR Settlement
Video Credit: Karin Carr
What Happened
In March 2024, the National Association of Realtors® (NAR) agreed to a $418 million settlement in antitrust lawsuits that alleged real estate commissions were being kept artificially high through MLS rules. As part of the settlement, NAR agreed to two sweeping rule changes that took effect August 17, 2024.
This is the biggest shift in how real estate commissions work in decades — but in practice, for most buyers and sellers in Payson and the Rim Country, the day-to-day experience isn't dramatically different. Transparency went up; good agents adapted immediately.
For Buyers
- Sign a Buyer Representation Agreement before touring homes
- Your agent's compensation is disclosed and agreed to upfront
- You can still request the seller cover buyer-agent costs in your offer
- Full representation doesn't have to cost you anything extra at closing
- More transparency — no hidden commissions baked into the MLS
For Sellers
- You are no longer required to offer buyer-agent compensation on the MLS
- You can still offer it as a negotiating tool to attract more buyers
- Commission is now fully negotiable — discuss strategy with your agent
- Your listing agent's fee is separate and negotiated directly with them
- Net proceeds depend on what you agree to — get clarity upfront
Brian's Take
"Honestly, not much changed for the people I work with. I've always explained exactly what I charge and why before anyone signed anything. The settlement just made that the law for everyone.
For buyers — I'll walk you through the Buyer Representation Agreement before we look at a single house. It's one page, it's clear, and in most cases I can structure your offer so the seller covers my fee. You get full representation without an extra bill at closing.
For sellers — we'll talk about whether offering buyer-agent compensation makes sense for your listing. In most cases it still does, because it brings more buyers to the table. But now you have a real choice, and I'll help you make the right call."
Brian Inman
Mountain Bear Homes · Payson, AZ
Frequently Asked Questions
What was the NAR lawsuit about?
A class-action lawsuit alleged that the National Association of Realtors® (NAR) and several large brokerages colluded to keep buyer's agent commissions artificially high. In March 2024, NAR agreed to a $418 million settlement and agreed to change its rules.
What changed on August 17, 2024?
Two major rule changes took effect: (1) Sellers are no longer required to offer compensation to a buyer's agent through the MLS. (2) Buyers must sign a written Buyer Representation Agreement with their agent before touring any home — so everyone knows up front what the agent's compensation will be.
Does this mean buyers now pay their agent out of pocket?
Not necessarily. Buyers can still ask sellers to cover their agent's compensation as part of their purchase offer — and most sellers are open to it, especially in a buyer-friendly market. The key difference is that the offer of compensation is now negotiated in the contract, not listed on the MLS behind the scenes.
Do sellers have to pay the buyer's agent anymore?
No — sellers are no longer required to offer buyer-agent compensation. However, many sellers choose to offer it anyway because it attracts more buyers. Your listing strategy should factor this in, and Brian will walk you through what makes sense for your specific situation.
What is a Buyer Representation Agreement?
It's a written agreement between a buyer and their agent that outlines services, duration, and compensation. You sign it before touring homes. It protects both parties and ensures full transparency about what your agent earns. Brian explains every line before you sign anything.
Has anything really changed for buyers in practice?
A little paperwork up front — but the process largely feels the same. You still tour homes, make offers, and negotiate. The big change is transparency: you know exactly what your agent earns before you start, and sellers can still agree to cover it in the deal.
How does Brian handle this with his clients?
Brian explains the Buyer Agreement clearly, keeps his compensation straightforward, and structures offers so sellers typically cover it when possible. His goal is for buyers to get full representation without coming out of pocket — just like before.
Questions about how this affects you?
Brian is happy to walk you through it — no pressure, just straight answers.