NAR settlement navigator

What is the NAR settlement?

In March 2024, the National Association of Realtors (NAR) agreed to a $418 million settlement in response to lawsuits alleging that traditional real estate commission practices were anti-competitive. The settlement includes significant changes to how real estate commissions work in the United States.

What real estate commissions looked like before

Traditionally, home sellers would pay the entire commission (typically 5-6% of the home's selling price) which would then be split between the seller's agent and the buyer's agent. This commission structure was often presented as non-negotiable, and the specific amount going to buyer's agents was displayed in the Multiple Listing Service (MLS).

Key changes from the settlement (in effect since August 2024)

• No more automatic buyer agent commissions: Sellers are no longer required to offer compensation to buyer's agents through the MLS.
• Transparency in buyer-agent agreements: Buyers now sign formal agreements with buyer's agents, establishing their compensation structure before beginning the home search process.
• Ban on "cooperative compensation": The NAR and MLS can no longer require sellers to offer compensation to buyer's agents.
• No commission filtering: MLS systems can no longer allow searches or filtering of properties based on commission levels.

How this affects you

As a seller: You have more flexibility in determining what you'll pay in commissions. While you can still choose to offer a buyer's agent commission, you're no longer required to do so.

As a buyer: You'll need to sign a formal agreement with your buyer's agent that specifies how they'll be compensated. This could mean negotiating with the seller to cover the cost, paying your agent directly, or some combination of both.

The Percent One advantage

Percent One charges a flat 1% for full-service listings (compared to the traditional 2.5-3%) — exactly the kind of transparent, negotiated pricing the settlement pushed the industry toward. Our transparent pricing model aligns perfectly with the changes brought by the NAR settlement, giving sellers more control over their real estate costs.

Learn more

For more detailed information about the NAR settlement and its implications, visit these resources:

• NAR's official settlement information
• Consumer Financial Protection Bureau guide
• Department of Justice announcement