Agent Commissions After the 2024 NAR Settlement

In August 2024, the NAR settled a class-action suit that changed how buyer agent commissions are handled. If you're selling, here's what changed, what it means for your net proceeds, and how to negotiate.

What changed

• ▸Before: the seller paid both agents (listing + buyer's) typically 5–6% combined, baked into the MLS.
• ▸After: buyer agent commission is negotiated separately. Sellers still often offer a buyer co-op, but it's no longer automatic.

The practical impact

• ▸Many sellers still offer 2–2.5% buyer co-op to attract financed buyers — particularly FHA/VA buyers who can't easily pay their agent out of pocket.
• ▸Cash buyers and investors increasingly push to reduce or eliminate the co-op.
• ▸Listing-side commission (typically 2.5–3%) is separately negotiable and often lower in competitive markets.

How to negotiate

1. Interview multiple listing agents. Compare their proposed commission, marketing plan, and recent sale prices in your area.
2. Decide your buyer co-op based on your buyer pool. A co-op expands your financed-buyer pool; skipping it narrows but raises your net if you still sell.
3. Negotiate the listing side — 2.5% is increasingly common where 3% was standard.
4. Tie compensation to performance, not just listing — ask what marketing, photography, and staging are included.

What it means for your proceeds

On a $500K sale, dropping the buyer co-op from 2.5% to 0% saves $12,500 — but only if you still attract enough offers to hold your price. Run the Net Proceeds calculator with your commission assumptions to see the real trade-off before you decide.