N.A.R. Settlement

What Buyers and Sellers Need to Know About the NAR Settlement, Commission Policies, and MLS Updates

In the real estate world, there’s been some big news recently regarding how commissions work—specifically due to a settlement involving the National Association of Realtors (NAR). While this might sound like industry talk, it actually affects both buyers and sellers in significant ways.

Here at R Squared Realty Experts, we’re breaking down what you need to know about these changes, how REcolorado fits into the equation, and why commission discussions are more important than ever in today’s real estate market.

The NAR Settlement: What’s Changed?

The NAR has been in the spotlight due to a lawsuit that claimed certain practices around real estate commissions were anti-competitive. The settlement that followed has introduced changes that aim to increase transparency and give both buyers and sellers more flexibility in negotiating commissions. But not all changes are as straightforward as they seem.

One of the key outcomes of this settlement is the increased scrutiny around how buyer agent commissions are disclosed - especially on the MLS (Multiple Listing Service). Let’s look at how this impacts both buyers and sellers.

For Sellers: What You Need to Know

1. Offering the Buyer Agent’s Commission: Why It Still Matters

While the NAR settlement pushes for more transparency, REcolorado has not approved showing buyer agent commissions on public listings. As a seller, this means buyer agents now have to reach out to your listing agent to confirm what their commission will be. If you’re not offering a competitive buyer agent commission, your home could sit on the market longer or attract fewer offers—simply because agents don’t feel incentivized to show the property.

Here’s the reality: offering to pay the buyer’s agent commission still works to your advantage. If buyers feel they may have to cover their agent’s commission out of pocket, they might shy away from your listing. In many cases, this can lead to fewer showings, fewer offers, and ultimately, a longer time on the market—which can drive down the sale price.

Our Advice: At R Squared Realty Experts, we recommend that sellers continue offering a competitive commission to the buyer’s agent. This will help bring in more activity, resulting in the kind of strong offers you want to see as a seller.

2. Negotiation Power in Your Hands

The good news? You now have more flexibility to negotiate the buyer agent’s commission. While we recommend offering a commission to drive interest, the exact amount is up to you. With the right strategy in place, you can attract qualified buyers while controlling your costs.

For Buyers: How This Affects You

1. Commission Transparency is Still Limited

Despite the NAR settlement’s call for more transparency, REcolorado isn’t yet displaying buyer agent commission rates on listings. This means you or your agent will need to contact the listing agent directly to find out what commission is being offered. If the commission being offered doesn’t align with what your agent is supposed to earn based on your agency agreement, you might be responsible for covering the difference.

But don’t worry! At R Squared Realty Experts, we’ve got your back. We have processes in place to protect our buyers from having to pay out-of-pocket to cover their agent’s commission. We make sure you’re never left holding the bag.

2. Be Aware of the Costs

If a seller isn’t offering to cover the buyer agent’s commission, you’ll need to be aware of the potential costs. Under these circumstances, you may find yourself needing to cover a portion of your agent’s fees, depending on your agreement. This could add to your closing costs, so it’s important to have these discussions upfront with your agent.

Pro Tip: Before making an offer, make sure you understand the commission situation. At R Squared Realty Experts, we help you navigate these conversations so you know exactly what to expect and avoid any surprises down the road.

The Big Picture: Protecting Both Buyers and Sellers

While the NAR settlement aimed to bring more clarity to real estate commissions, there are still some gray areas—especially with MLS platforms like REcolorado not showing buyer agent commissions upfront. Whether you’re a buyer or a seller, it’s more important than ever to have a real estate team that’s ready to protect your interests.

• For Sellers: Offering to cover the buyer agent’s commission can help you sell faster and at a higher price. We strongly recommend working with your agent to determine a fair commission that attracts qualified buyers.

• For Buyers: Make sure you understand your agent’s compensation upfront, and work with a real estate team that has your best interests at heart. At R Squared Realty Experts, we’ve built systems to ensure you’re never stuck paying extra for something that should be handled by the seller.

Got Questions? Let’s Talk!

At R Squared Realty Experts, we’re here to guide you through these changes and make sure you’re protected at every step of the real estate journey. Whether you’re buying or selling, our team is ready to help you make the most of this new landscape. Reach out to us today to discuss how we can assist you in navigating these updates and getting the results you want.

RANDY AVILA | 720-935-0248 | [email protected]