How the NAR Settlement Changed Real Estate Commissions in 2026

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 $4,995 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 $4,995 fee with the rest rebated back to you.

What changed for buyers in practical terms

In 2026, buyers should expect a written buyer representation agreement earlier in the process, clearer disclosure of fees, and more room to compare flat fee brokerages against traditional percentage-based agents. The old default is weaker, so shopping your representation matters more now.

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.

Real Buyers Making the Switch

The NAR settlement isn't just theory — real buyers are already saving thousands by choosing flat fee brokerages over traditional agents.

Take Jarai Howard, a Dallas homebuyer profiled by the New York Post in July 2024. Facing $25,000 in buyer agent fees on his home purchase, Howard ditched traditional agents in favor of ShopProp — a company that charges flat fees for their services. Instead of paying a percentage-based commission, he paid a flat fee and kept the rest.

As ShopProp CEO Rob Luecke told NPR in May 2025: “Home buyers and sellers almost feel like they’re trapped into using agents, rather than they’re hiring agents at a reasonable fee.” NPR profiled a ShopProp client who purchased a $10.2M home in Atherton, CA and received a $247,000 rebate — paying just $7,995 instead of a traditional $255,000 commission.

As Luecke also told MarketWatch: “We’ve been anti-commissions for a long time. I believe it should be free.”

Stories like these illustrate why the flat fee model is gaining traction in a post-settlement world. When buyers can see exactly what they're paying — and keep the rest — the old percentage-based system stops making sense.