CHICAGO — May 2025.
After a $418 million settlement rocked the National Association of REALTORS® (NAR) this spring, a major deadline looms. Starting August 17, every homebuyer must sign a written representation agreement before touring a home, and MLS platforms can no longer display how much—if anything—a seller is offering to pay a buyer’s agent.
What exactly changes?
| Old Rule | New Rule (Effective August 17, 2025) |
|---|---|
| MLS listings showed a fixed % the seller would pay the buyer’s agent. | Compensation can’t be advertised in the MLS; it must be negotiated privately. |
| Buyers often signed agency paperwork at offer time. | Signed contract is now required before any showings. |
How deals may look this fall
Scenario 1: Seller still offers 2 %—but does so via off-MLS channels (broker-to-broker blast), and the buyer signs to accept it.
Scenario 2: Buyer pays some or all commission out of pocket. Lenders confirm they can finance the fee if it stays below seller-paid closing-cost caps (3–9 % depending on loan type).
“Expect listing agents to pitch ‘commission credits’ at closing, similar to rate buy-downs,” says Redfin’s legal chief. Bankrate
Winners & risks
- Transparent shoppers can shop à-la-carte services or flat-fee brokers.
- Low-down buyers (FHA, VA) risk cash-strain: paying their agent directly may boost required reserves.
- Listing data fragmentation is likely—watch startups crawl public records to create shadow commission feeds.
Action steps
- Ask lenders now if they’ll let you roll agent fees into the loan.
- Compare buyer-broker contracts—hourly, flat fee, or percentage.
- Budget 1–3 % cash cushion if you expect to shoulder commission.
August will reset decades-old norms. Early adopters who treat commission like any other negotiable line item could shave thousands off total transaction costs—provided they prep their financing.
