NAR Commission Changes: New Rules Reshape US Real Estate Market

NAR Implements Landmark Commission Rule Changes in 2025

The National Association of Realtors (NAR) has introduced pivotal changes to real estate commission structures, effective August 17, 2025. Following a landmark lawsuit settlement in March 2024, the new rules prohibit listing agents from posting compensation offers for buyer-side agents on NAR-affiliated MLS platforms. This shift mandates that buyers negotiate and pay their agent fees directly through written contracts before property viewings. The move is designed to increase transparency and allow more direct negotiation, challenging traditional norms where sellers indirectly covered these costs. Despite initial concerns, average buyer-agent commissions have remained stable or increased slightly, particularly for homes priced under $1 million.

Commission Model Overhaul: Direct Negotiation with Buyer Agents

According to Florida Realty Marketplace, the new regulations aim to introduce transparency by shifting the responsibility of paying buyer's agents from sellers to buyers. This is facilitated through mandatory written agreements between buyers and their agents. Buyers must now engage directly in fee negotiations, which proponents say could foster competition and improve service quality. However, some market experts, as noted in Liquify, caution that real estate commissions might decrease by as much as 25% to 50% due to these changes.

Regional Impact: Varied Responses Across the United States

The impact of these commission changes varies by region. In states with traditionally high real estate activity like California and New York, buyers and agents are quickly adapting to the new model. However, in less active markets, there's greater hesitance about the direct negotiation process. According to Alliance Home and Land Group, real estate agents in these regions are devising new service packages to adapt, including diversified revenue streams and reduced operational expenses.

Market Effects: Stability in Buyer-Agent Commissions

Contrary to some expectations, the introduction of the NAR's new commission rules has not led to a significant decrease in buyer-agent commissions. As highlighted by Propertize Plus, the stability in commission rates, especially for homes under $1 million, has been maintained or even slightly increased. This stability can be attributed to the high demand for experienced agents in negotiating complex transactions, which retains the value of their expertise despite the structural changes.

Average buyer-agent commissions have remained stable, especially for homes under $1 million.

Stakeholder Perspectives: Buyers and Agents Adjust

Both buyers and agents are navigating the changes with varying degrees of readiness. For buyers, the new rules necessitate more upfront financial planning and negotiation skills. Agents, on the other hand, are leveraging the opportunity to showcase their value through enhanced services. As noted in HomeLight, agents are increasingly offering tiered service packages to accommodate different buyer needs and budgets, which can also serve as a strategy to protect their income despite potential commission reductions.

Future Implications: An Evolving Real Estate Landscape

The NAR commission changes mark a significant shift in the U.S. real estate landscape, with potential implications for international markets. As the direct negotiation model gains traction, it might influence global real estate practices, encouraging transparency and competitive service offerings. RealEstateAbroad.com analysis suggests that the new rules could lead to a more balanced power dynamic between buyers and agents, fostering a market environment where value is clearly delineated and negotiated.

Key Takeaways:

• The NAR's commission rule changes are pushing for greater transparency in agent compensation.
• Direct fee negotiations between buyers and agents are now mandatory before property viewings.
• Average buyer-agent commissions have remained stable, especially for homes under $1 million.
• Regional responses vary, with more established markets adapting quickly.
• The changes could set a precedent for international real estate practices.