NAR Settlement Update

Many expected the National Association of Realtors (NAR) settlement to be a seismic event for the real estate industry, but a year after the rule changes went into effect, the market has remained remarkably stable. Contrary to predictions of widespread disruption, the core mechanics of buying and selling homes have largely gone on as before. While the settlement has introduced some new formalities and disclosures, it has not, as of yet, fundamentally altered the industry’s business model or led to a dramatic drop in commissions.

Low ($599,000): 1216 SW 32nd Court
3 bed, 2.5 bath, 2,386 square feet, .22 acre lot
Built in 2001. *Jamie Sinclair of RE/MAX Key Properties*

High ($2,099,000):
15 SW Quail Butte Place, Bend
4 bed, 3 bath, 3,923 square feet, .62 acres
Built in 2004. *Courtney Perkey of RE/MAX Key Properties*

The most significant change from the NAR settlement was the prohibition of listing a buyer’s agent’s commission on the Multiple Listing Service (MLS). This was intended to make commissions more transparent and encourage negotiation, ultimately lowering the cost of buying and selling a home. However, the data from the first year paints a different picture. According to some analyses, buyer’s agent commissions have not seen a significant drop. In fact, some reports even suggest commissions have slightly increased in certain price brackets. This is likely because, even though the commissions are no longer advertised on the MLS, sellers can still offer compensation to a buyer’s agent “off-MLS,” and the practice of doing so has continued. Many sellers find it to be a key incentive to attract buyers and their agents, especially in a competitive market.

Another key aspect of the settlement was the requirement for buyers and their agents to enter into a written agreement before touring a home. This was meant to clarify the agent’s services and compensation upfront. While this has been a procedural change for many agents and homebuyers, it hasn’t led to the expected decrease in the use of buyer’s agents. Most buyers still opt to work with an agent, as the complexity of the home-buying process and the value of having a professional advocate remain high. For many, especially first-time homebuyers, the thought of navigating negotiations, inspections, and closing without professional representation is daunting. This new requirement has simply formalized a pre-existing understanding, rather than fundamentally changing the buyer-agent relationship.

A new challenge that has emerged is the frustration of unrepresented buyers who, by not having an agent, must coordinate directly with the listing agent for showings. They sometimes get upset with listing agents who are unable to reschedule their day to accommodate a specific showing request. This is often a logistical problem, not an unwillingness on the listing agent’s part, as they have multiple clients and responsibilities to manage. The listing agent may be tied up with another showing, a closing, or other business.

While the new rules have introduced increased transparency and consumer choice in theory, in practice, the industry has adapted without a major overhaul. For now, the real estate landscape remains largely familiar.

This article appears in the Source August 21, 2025.