What the NAR Settlement Actually Means for Buyers + Sellers
You’ve probably seen the headlines — real estate commissions are under fire and the industry is shifting. But what’s actually happening beneath all the media noise? Let’s break it down so you can understand how this affects you as a buyer or seller moving forward.
First, What Is the NAR Settlement?
The National Association of REALTORS® recently agreed to a settlement that will change how real estate commissions are disclosed and negotiated. It’s sparked a lot of confusion, half-truths, and clickbait. So let’s cut through it and talk facts:
What This Means If You're Buying:
• Buyer Representation Agreements Are Now Required
To work with an agent, buyers will now sign a formal agreement upfront. This outlines what your agent is responsible for, how they’ll get paid, and gives them legal grounds to advocate for your best interests — just like a listing agreement for sellers.
• Buyers Can Still Negotiate for the Seller to Cover Their Agent’s Fee
Yes, buyers may technically be responsible for paying their agent’s commission — but that fee can be negotiated into the offer as a seller-paid concession. In many cases, we’ll likely see sellers continue covering it as part of the deal, just structured differently.
What This Means If You're Selling:
• You Can’t Advertise Buyer Agent Commission on the MLS Anymore
Starting July, you won’t see buyer agent commissions listed directly in the MLS. But that doesn’t mean you can’t offer it — agents will now handle that negotiation off-platform.
• You Can Still Offer Buyer Concessions
Want to attract more offers? You can still offer to help cover buyer closing costs (which may include their agent’s commission). Smart sellers will lean into this — because failing to offer that coverage could shrink your buyer pool and your final sale price.
FAQs — What Buyers + Sellers Are Asking Me Right Now:
Q: Can buyers still ask sellers to cover the buyer agent fee?
Yes — and this will likely remain the standard in competitive markets like LA. When sellers offer to cover the buyer broker fee, it keeps the buyer’s purchasing power strong, which in turn helps maximize the seller’s sale price.
Q: Haven’t buyers always paid commissions through their offer price anyway?
Exactly. Even when the commission came out of the seller’s proceeds, those proceeds were funded by the buyer’s purchase price. This new structure just makes that process more transparent.
Q: Why would a seller want to cover the buyer’s agent commission?
Let’s say a buyer has $1M to spend and needs to put 20% down ($200K). If they suddenly have to pay their agent an extra 2.5% ($25K) out of pocket, their down payment drops to $175K—reducing their purchase budget to $875K. That’s a $125K difference in potential offer price just because the seller didn’t offer a concession.
Q: Why wouldn’t a buyer just go straight to the listing agent?
Because the listing agent works for the seller. If you’re a buyer, you deserve someone legally obligated to fight for your best interests— someone who can analyze comps, guide you through disclosures, and negotiate like it’s their own money on the line. Especially in a competitive, low-inventory market like LA, representation matters.
Final Thoughts from Me
I’m actually excited about this shift. It brings more clarity to the transaction process, raises the bar for agents, and ensures clients know exactly what they’re getting. Real estate commissions have always been negotiable — and now we’re just making that more visible.
Buying in the U.S. comes with unmatched protections, disclosures, and opportunities to build wealth. That’s why our system has worked as long as it has — and why homeownership remains one of the most powerful wealth-building tools we have.
If you have questions or want to talk through what this means for your specific situation — reach out. I’m here to make sure you’re protected, informed, and ahead of the curve.
Bella Sánz | Bella’s Estate
📍 Los Angeles Real Estate
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