How the NAR Commission Settlement Changed the Way Listing Agents and Buyers Negotiate Fees

Written by:

Rudi Davis

Date:

10 Mar 2026

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When the National Association of Realtors (NAR) settlement changed how real estate commissions are handled, many in the industry expected listing agents’ pay to fall. The prevailing view was that sellers would stop paying buyer’s agents, and listing agents would have to lower their own fees to remain competitive. According to Brian Maser, Founder and Broker at The Condo Experts, the reality has been different, at least for agents who have adapted to the new structure.

Maser says the initial reaction among agents was concern, with many fearing their compensation would drop. Instead, listing agents now have more control over their earnings.

“Listing agents now can earn what they’re due,” Maser says.

Previously, listing agents set a total commission that included both their own fee and the buyer’s agent’s share. When a seller wanted to reduce costs, it was typically the listing agent who absorbed the cut, since the buyer’s agent commission was treated as fixed. The structure forced listing agents to defend their value while regularly accepting lower compensation.

The NAR settlement has changed that dynamic. Now, listing agents negotiate their fee directly with the seller. Buyer’s agents negotiate their compensation separately with their clients before submitting an offer. The separation lets listing agents stand firm on their fees, leaving buyer’s agents and their clients to negotiate their own terms.

How the NAR Settlement Changed the Commission Negotiation Process

Under the new system, a listing agent might charge a seller 3% and specify in the contract that no buyer’s agent commission is included. When a buyer’s agent submits an offer, they include a request for their own compensation, often 2% to 2.5%, as part of the offer terms. The seller can accept, reject, or counter this request during negotiations.

Maser explains that the new approach allows listing agents to avoid reducing their own commission. If a seller wants a lower overall commission, the listing agent can hold to their 3% fee and leave the buyer’s agent commission to be negotiated separately.

The restructured system gives listing agents leverage they did not have under the previous model. If a buyer’s agent requests a 2.5% commission and the seller offers 1.5%, the buyer’s agent must decide whether to accept the lower fee, negotiate with their client to cover the gap, or walk away from the deal. The listing agent’s fee is no longer part of this negotiation.

According to Maser, the shift means sellers are often paying lower total commissions than under the previous model because the pressure to reduce fees has moved to the buyer’s side.

“We’ve seen a net result of a better commission structure overall for the sellers if they follow the right process. It’s not coming from the listing side, which everybody was against. It’s coming from the buyer side, and they can work it out,” Maser says.

Why Listing Agents Can Now Maintain Their Fees Under the New Rules

Maser argues that the previous system failed to recognize the upfront investment listing agents make to secure business. Listing agents spend on marketing, branding, and lead generation before they meet a client, costs that are often invisible to sellers.

“When sellers wanted to reduce their overall commission, they would go to the listing agent and say, ‘We have to give the buying side two and a half.’ So you, listing agent, who has spent time and money, would be the one to take the cut,” Maser says.

Now, listing agents can be compensated for their upfront work without subsidizing the buyer’s agent. For agents who invest in marketing and client acquisition, the change represents a meaningful improvement.

However, the benefit applies only to agents who understand and use the new system correctly. Agents who continue to lower their own fee to make a deal more attractive are not taking advantage of the opportunity the new rules provide.

How Buyer’s Agent Compensation Became a Negotiable Part of Every Offer

Under the new rules, buyer’s agent compensation is negotiated as part of the offer rather than set in advance by the listing agent. Sellers can weigh buyer’s agent commission requests alongside price, contingencies, and closing terms.

In practice, the change has made negotiations more transparent. A seller might receive two otherwise identical offers: one with a 2.5% buyer’s agent commission request and one with 1.5%. The seller can factor in the commission difference when deciding which offer to accept, treating the buyer’s agent fee as part of the net proceeds.

For buyers, the cost of their agent is now more visible and more closely tied to the value provided. Buyer’s agents who want to maintain higher commissions must demonstrate their value to clients, who are now directly aware of what they are paying.

Why Agent Knowledge of the New Rules Determines Who Benefits From the Change

The success of the new commission structure depends on how well agents understand and use it. Listing agents who continue to negotiate their own fees downward or fail to explain the new process to clients are not benefiting from the change. Agents who have adapted can maintain or increase their compensation while achieving better outcomes for sellers.

As more agents adopt the new approach, it is likely to become standard practice. Sellers who work with agents still operating under the previous model may pay more, as those agents continue to absorb cuts that should now fall to the buyer. The new rules have created a clear advantage for sellers who choose agents familiar with the updated framework.

What the NAR Commission Changes Mean for Buyers, Sellers, and Agents Going Forward

The NAR commission changes were expected to reduce listing agent pay, but the financial pressure has shifted to the buyer side. Today’s market rewards listing agents who understand how to structure deals under the new rules, while buyers and their agents face greater pressure to justify their compensation. Sellers who work with knowledgeable agents are seeing better financial outcomes and clearer negotiations.

As the new structure becomes more widely adopted, buyers and their agents will need to prepare for tougher negotiations and a more transparent commission process. Listing agents who master the new rules are likely to maintain their earnings, while the buyer side adjusts to a market where every fee must be earned and explained.