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NAR Settlement Explained: What It Means for Home Buyers and Sellers

Expert guidance from ShopProp — helping home buyers and sellers save since 2007.

What was the NAR settlement?

In 2024, the National Association of Realtors (NAR) settled a landmark lawsuit that challenged how real estate commissions work in America. The settlement ended the requirement for sellers to offer commission to buyer agents through the MLS.

How commissions worked before

Before the settlement, sellers were essentially required to offer 2.5-3% commission to the buyer's agent as a condition of listing on the MLS. This meant sellers were paying both sides — often 5-6% total.

What changed after the settlement

Sellers are no longer required to offer buyer agent commission through the MLS. Buyers must sign agreements with their agents specifying compensation. Commission is now more transparent and negotiable.

What this means for sellers

Sellers have more control over what they pay. You can negotiate or decline to offer buyer agent commission. With ShopProp's flat $4,495 listing fee, you already pay far less than the old standard.

What this means for buyers

Buyers now need to understand and agree to their agent's fees upfront. This is where ShopProp's buyer rebate model shines — a flat $4,495 fee with the rest rebated back to you.

The future of real estate commissions

The settlement is accelerating the shift toward transparent, competitive pricing. Flat-fee models like ShopProp's are positioned to benefit most from this change. The days of paying $30,000+ in commissions on a $1M home are ending.

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