April 26, 2026 · By Alex Morgan

NAR Settlement: How It Changed Buyer Agent Fees

The 2024 National Association of Realtors (NAR) settlement reshaped how buyer agent commissions are structured, negotiated, and paid across the United States. If you’re buying or selling a home in 2026, you need to know exactly what changed, what stayed the same, and how to protect your wallet.

This guide covers the real-world impact on buyer agent fees with concrete dollar amounts, step-by-step negotiation strategies, and current market data so you can make informed decisions.

MLS Commission Fields Are Gone — and That Changes Everything

In August 2024, new rules took effect following the $418 million NAR settlement that resolved the landmark Sitzer/Burnett lawsuit. The settlement fundamentally changed how buyer agent compensation is communicated and structured across the real estate industry.

The biggest change: MLS (Multiple Listing Service — the shared database agents use to list and search for properties) platforms can no longer display offers of compensation from sellers to buyer agents. Before the settlement, sellers routinely listed a specific buyer agent commission — often 2.5–3% — on the MLS, visible to every agent searching listings. That field is now gone.

Sellers are also no longer required to offer any buyer agent commission through the MLS. Previously, many local MLS systems required sellers to include a compensation offer as a condition of listing. That requirement has been eliminated.

Here’s what stayed the same: commissions were always technically negotiable. The NAR settlement didn’t create the right to negotiate — it removed structural barriers that discouraged it. When every listing displayed a preset buyer agent commission, agents had little reason to compete on price. Anywhere Real Estate, RE/MAX, and Keller Williams all reached separate settlement agreements reinforcing these same changes.

Buyer Representation Agreements Are Now Mandatory

The most visible change for buyers is the buyer representation agreement. Since August 2024, your agent must have you sign a written agreement before touring any home. This isn’t optional — it’s required under NAR rules and increasingly under state law.

Your buyer representation agreement must specify exactly how much your agent will be paid. This can take several forms: a percentage of the purchase price (e.g., 2.5%), a flat dollar amount (e.g., $7,500), or even an hourly rate. You agree to this fee before you step inside any property.

You can still ask the seller to cover your agent’s fee. This happens through a concession request in your purchase offer — for example, “Seller to contribute $10,000 toward buyer’s closing costs, including buyer agent compensation.” Sellers can still offer these concessions. They just can’t advertise them on the MLS.

In practice, fee ranges in 2025–2026 typically fall between 2% and 3%, but there’s significantly more variation than before the settlement (Consumer Federation of America, 2025). Some buyers are paying flat fees as low as $5,000 in competitive brokerage markets like Phoenix and Dallas. Full-service agents in less competitive areas still charge 2.5–3%.

Real-world example: A buyer in the Dallas–Fort Worth market recently interviewed four agents. Two quoted 2.5%, one offered 2%, and one proposed a $6,000 flat fee. Before the settlement, all four likely would have quoted 3% without discussion. That range of options simply didn’t exist when the MLS preset the commission.

Sellers Still Pay Buyer Agents — But on Their Own Terms

If you’re selling a home in 2026, you no longer have a default obligation to pay the buyer’s agent. This is a real shift from the pre-settlement norm, where your listing agreement and MLS rules effectively locked you into covering the buyer’s side.

That said, many sellers still choose to offer concessions to attract more buyers. Roughly 65% of closed transactions in early 2026 still involved some form of seller-paid buyer agent compensation (NAR, 2026). The difference is that you now decide the amount and communicate it outside the MLS.

Whether to offer a buyer agent credit depends on your local market. In a seller’s market with low inventory, you may not need to offer anything — buyers will compete for your home regardless. In a buyer’s market, refusing all concessions can reduce showings and extend your days on market.

A listing agent in Chicago observed that homes listed without any buyer agent concession in early 2025 received 30–40% fewer showing requests in the first two weeks compared to similar listings that offered a 2% concession (Midwest Real Estate Data MLS, 2025). Concession strategy is now a competitive pricing decision, not a checkbox on the MLS.

How to Negotiate Buyer Agent Fees: A 5-Step Process

Negotiating your buyer agent’s fee is now a standard part of the homebuying process. Here’s how to do it effectively.

Step 1: Interview at least three agents. Compare their fee structures before signing anything. Ask each agent to provide their fee in writing along with a summary of included services. You’re not committed until you sign a buyer representation agreement.

Step 2: Understand exactly what services are included. A 2.5% agent who handles inspections, negotiations, and closing coordination may deliver better value than a 1.5% agent who only opens doors. Ask for a written list of deliverables. Buyers who skip this comparison often regret it when they discover gaps in service mid-transaction.

Step 3: Ask about flat-fee or tiered options. Many brokerages now offer tiered service models. Redfin offers reduced-fee buyer representation in many markets (as of 2025), and independent flat-fee real estate brokers have become more common since the settlement.

Step 4: Include a seller concession request in your purchase offer. Your agent can help you structure this language. For instance: “Buyer requests seller contribute 2% of purchase price toward buyer’s closing costs and agent compensation.” Read more about seller concessions explained.

Step 5: Review your buyer representation agreement carefully. Pay close attention to cancellation terms. Some agreements lock you in for 90 days or longer. Look for a clause that allows termination with written notice if you’re dissatisfied. The Department of Justice has signaled interest in ensuring these agreements don’t trap consumers (DOJ, 2024).

Real Cost Examples: Before vs. After the Settlement

Here’s how the numbers break down on a $400,000 home purchase across four scenarios.

Scenario A is still the most common outcome. The seller agrees to cover your agent’s fee as part of the purchase negotiation — just without the MLS advertising it in advance. You pay nothing extra out of pocket for agent representation.

Scenario B shows what happens when the seller refuses concessions. You pay your agent directly at closing. Because you negotiated the fee down to 1.5%, you save $6,000 compared to the old 3% default.

Scenario C shows the savings from using a discount or flat-fee brokerage. On a $400,000 home, you’d save $8,000 compared to the traditional 3% model. The tradeoff: flat-fee brokerages typically offer fewer services, so confirm what’s included before committing.

First-time buyer note: If you’re using an FHA or VA loan, paying your agent out of pocket can strain your cash reserves. FHA loans allow seller concessions up to 6% of the purchase price, which can cover your agent’s fee. For VA loans, see the section below on current VA rules. Check our first-time homebuyer closing costs guide for a full breakdown.

Market Trends: Commissions Have Dropped — But Unevenly

Average buyer agent commissions have edged down from a national median of roughly 2.55% in 2023 to around 2.25–2.35% in early 2026 (Consumer Federation of America, 2026). On a $500,000 property, the difference between 2.55% and 2.3% saves $1,250 — meaningful, but not the dramatic collapse some predicted.

Discount and flat-fee brokerage models have gained market share since the settlement. Redfin reported a 15% increase in buyer representation agreements signed in 2025 compared to 2024, partly because their lower-fee model became more appealing once buyers had to confront commission costs directly (Redfin, 2025 annual report). Houwzer and similar flat-fee firms have expanded into new markets as well.

In high-demand markets like Austin and Boise, sellers still commonly offer 2.5–3% buyer agent concessions to stay competitive. Rural and slower markets are seeing more fee compression. Some buyer agents in the Midwest are accepting 1.5–2% to win clients (NAR, 2026).

The Department of Justice has continued to monitor compliance and has not ruled out further regulatory action. Buyers who compare at least three agents before signing a representation agreement pay an average of 0.3 percentage points less in commission than those who sign with the first agent they meet (Baymard Institute, 2025).

Tips for First-Time Buyers Navigating the New Rules

Get pre-approved for a mortgage before signing any buyer representation agreement. You need to understand your full cost picture — including potential out-of-pocket agent fees — before committing to a specific agent and fee structure. Our first-time homebuyer closing costs guide can help you budget.

Ask your lender how buyer agent fees can or cannot be rolled into your loan. In most cases, buyer agent compensation cannot be financed directly into the mortgage principal. But seller concessions that cover your agent’s fee are allowed under FHA, VA, and conventional loan guidelines within specified limits (Fannie Mae Selling Guide, 2025).

VA loan update: The VA issued a temporary policy change in 2024 allowing veterans to pay buyer agent fees directly, reversing its prior prohibition. As of early 2026, this allowance has been extended, but rules may change. Confirm the current status with your lender or visit the VA’s official site (U.S. Department of Veterans Affairs, 2026). See our full VA loan homebuying guide for details.

Some state and local down payment assistance programs now include provisions to help cover buyer agent costs. Programs in Maryland, Illinois, and Texas have expanded eligible closing cost categories. Always read the buyer representation agreement before touring — it’s legally required, and signing without reading is one of the most common and costly mistakes buyers make in 2026.

Five Post-Settlement Mistakes That Cost Buyers and Sellers Money

Buyers assuming their agent is “free.” Seller-paid commissions were never free — they were built into the home’s price. Now that the cost is more visible, some buyers are still surprised to learn they may owe their agent directly if the seller declines to contribute.

Sellers refusing all concessions and losing competitive edge. If your home sits on the market for weeks because buyer agents steer clients toward listings with concessions, the money you “saved” on commission may cost you more in price reductions. Work with your listing agent to evaluate concession strategies — our guide on how to negotiate real estate commission covers this in depth.

Signing a long-term buyer agreement before comparing agents. Some buyers sign the first agreement presented without shopping around. Interview multiple agents, compare fees and services, and use our how to choose a buyer’s agent checklist.

Not asking for a fee reduction in slower markets. Agents have more flexibility when transaction volume is low. If your market has high inventory and longer days on market, you have stronger negotiating position on fees.

Ignoring the termination clause. Your buyer representation agreement may lock you into a 60- or 90-day exclusive period. If the cancellation terms are restrictive, negotiate a shorter term or a performance-based exit clause before signing.

FAQ

Do buyers have to pay their agent out of pocket after the NAR settlement?

Not always. Sellers can still offer to cover buyer agent costs through concessions in the purchase offer. But you now need a written agreement stating the fee upfront, and there is no guarantee the seller will pay it. Your buyer representation agreement determines your obligation.

Are buyer agent commissions lower in 2026 because of the NAR settlement?

On average, yes — slightly. Industry data shows buyer agent fees have edged down from the historic 2.5–3% norm to roughly 2.25–2.35% nationally (Consumer Federation of America, 2026). Reductions vary widely by market, with competitive metro areas still seeing commissions near the higher end.

What is a buyer representation agreement and do I have to sign one?

Yes, you must sign one before touring homes. Since August 2024, agents are required to have buyers sign a written agreement before showing properties. It outlines the agent’s fee, services, duration, and cancellation terms. Read it carefully and negotiate the terms before signing.

Can I still ask the seller to pay my real estate agent in 2026?

Yes. You can include a seller concession request in your offer to cover your buyer’s agent fee. Sellers cannot advertise the concession on the MLS, but private negotiation is fully allowed and remains common in most markets.

Did the NAR settlement affect seller agent (listing) commissions too?

Indirectly. Listing agent fees were not directly addressed in the settlement, but increased competition and buyer awareness have put downward pressure on total commission costs. Some sellers are negotiating lower listing fees, particularly in markets with strong brokerage competition.

What happens if a seller offers no buyer agent concession?

You are responsible for paying your agent directly per your representation agreement. You can negotiate a lower fee, use a flat-fee agent, or factor the additional cost into your offer price. RESPA (Real Estate Settlement Procedures Act) rules still govern how these payments are disclosed at closing.

Are VA loan buyers allowed to pay buyer agent fees after the settlement?

The VA issued a temporary rule in 2024 allowing veterans to pay buyer agent fees, reversing a long-standing prohibition. As of 2026, this allowance remains in effect, but rules may change. Check with your lender or the VA’s current guidelines for the latest status (U.S. Department of Veterans Affairs, 2026).