Buyers panicked. Sellers celebrated. Most of what everyone heard in the first 48 hours after the NAR settlement was incomplete. Here is the full picture.
If you bought a home before 2024, you probably heard something about a big shakeup in how real estate commissions work. Maybe you caught a headline, thought “that sounds like a mess,” and just kept scrolling. Totally understandable.
The problem is, if you are thinking about buying or selling anytime soon, that headline likely only told you part of the story. The part it left out is the part that actually matters.
I’m Bret Johnson, associate broker with Realty Network Group at Real, and I specialize in making real estate really easy. Let me give you the real picture of what changed, what did not, and what it means for you moving forward.
The headlines told you half the story. Back in 2024, the National Association of Realtors settled a major lawsuit. It was everywhere. Buyers started panicking, thinking they would have to write a separate check to their agent on top of their down payment. Sellers started celebrating, thinking they were about to save thousands and no longer pay commissions. The internet had a field day, as it always does. Then everybody stopped paying attention.
Most people are still walking around with the version of the story they heard in those first 48 hours. Unfortunately, a lot of that version is either incomplete or just not what is actually happening out here in the real world.
Here is what actually changed. The old system had buyer agent compensation built right into the multiple listing service, which we call the MLS. The MLS is the database real estate brokers use to market listings to other brokerages. Every listing in the MLS had a compensation amount tied to it. That part went away with the lawsuit settlement. Brokers can no longer advertise buyer agent compensation on the MLS.
The second big change is that now, before a buyer starts viewing homes with an agent who is a member of the National Association of Realtors, the buyer has to sign a written agreement upfront. That agreement spells out what the agent charges and exactly what services are included. This actually brings more transparency right from the start.
Here is what most people missed entirely. Sellers can still agree to pay the buyer’s agent. That option never went away. The rule just changed where and how that conversation happens. Right now, in most transactions, sellers are still covering that fee.
The commission collapse everyone predicted? It never happened. According to Redfin’s national data, buyer agent commissions are back to the same levels they were sitting at before the settlement. We are still doing business. The market is still moving. Things just look a little different on paper.
What buyers need to know. If you are buying, the biggest thing you will notice is the written agreement I mentioned. If you choose to work with a Realtor, you will sign it before you start looking at homes. It lays out the fee clearly so there are no surprises later. This is actually a good thing.
In most cases, your agent will negotiate a seller contribution to cover that fee as part of your offer. It is the same idea as asking the seller to cover your other closing costs, like lender fees and escrow fees. Buyers have been doing this for years already. The paperwork changed. The outcome is typically the same.
Here is a number that says a lot. According to the NAR’s 2025 Profile of Home Buyers and Sellers, 88% of buyers still used a real estate agent, and that number held steady through all of these changes. People want someone in their corner. Someone who knows the market, catches what they might miss, and advocates for them. That has not changed, and I do not believe it is going to.
What sellers need to know. If you are selling, you might be thinking, “Bret, can I skip paying the buyer’s agent out of pocket and save that money?” Technically, yes. You could have always done that. Here is what it usually looks like from the buyer’s side, though.
When a buyer has to come up with extra money out of pocket just to have someone represent them, many of those buyers are going to look at a different listing, possibly down the street, where the seller is willing to cover that fee. Making your home less affordable to buyers means fewer showings, a smaller buyer pool, and usually a longer time on market. All of those tend to push the sale price down.
The money you thought you might save up front by not participating in the buyer agent fee usually ends up costing more on the back end. The sellers I see do really well in this market right now are the ones who talk through a strategy with their agent, look at their specific situation, and position their home to attract as many qualified buyers as possible.
Let’s talk through your move. If you have not bought or sold since these changes took effect, or if you are starting to think about making a move in the Phoenix metro, let’s have a quick conversation. I want you to feel confident going into it, not surprised in the middle or at the end of it.
Call or text me at 602-502-6468, email bret@rngaz.com, or visit realestatewithbret.com for more, including why buyers are finally in control again. Let’s chat about a strategy that makes your move really easy.
