Who Pays the Buyer’s Agent After the NAR Settlement?

Are you about to buy or sell a home? You may have heard that the National Association of Realtors (NAR) settled the antitrust class-action lawsuits brought against it. The NAR agreed to pay $418 million.

According to the plaintiffs, real estate agents across the country had artificially inflated their commission rates for home sellers. The plaintiffs claimed that sellers were effectively forced to pay commissions of around 6% per home sale, covering both the buyer’s and the seller’s agent.

The NAR never admitted wrongdoing, but it agreed to the $418 million settlement and to changes in how commissions are promoted, negotiated and agreed upon.

Is the commission rate still 6%?

If you are like most home buyers and sellers, you might be wondering what real estate commissions look like after the NAR settlement of March 2024. Many people still believe agents charge the 6% rate that was common for decades, from at least the 1990s until the 2024 settlement.

The important thing to understand is that the 6% rate was never an official rule or legal requirement. It was an informal standard set by the real estate industry. The 6% was usually split between the buyer’s agent and the seller’s agent, which meant roughly 3% for each side.

Today, 6% is no longer a default. Buyer’s and seller’s agents negotiate their commissions independently. What has changed is that those fees can no longer be hidden from the buyer or seller: the settlement requires more transparency about compensation in each transaction.

For reference, a Redfin report found that the average buyer’s agent commission in the United States was 2.42% in the third quarter of 2025. Your buyer’s agent fee could be lower or higher, depending on what is negotiated.

What changed after the NAR settlement?

Three major changes came out of the settlement:

• Written buyer agreements. Before touring a home with a buyer, in person or virtually, a buyer’s agent must have a written agreement that states the amount or rate of their compensation, and the buyer must sign it. The rules vary by state, so it is worth checking with a licensed professional before signing.
• No compensation offers on the MLS. Sellers’ agents and brokers can no longer advertise offers of compensation to buyer’s agents on Multiple Listing Service (MLS) platforms. Such offers can still be made outside the MLS, for example during negotiations.
• Independent negotiation. The seller’s agent and the buyer’s agent commissions are now negotiated separately rather than split from one fixed amount, so the two can differ. A seller can still agree to cover some, all or none of the buyer’s agent fee, and a buyer can pay their own agent under their own agreement.

For more detail on the changes and how they affect buyers and sellers, see the NAR’s official settlement FAQs, listed in the sources below.

Who pays the buyer’s agent now?

The settlement does not require either side to pay the buyer’s agent. It depends on what is negotiated.

For example, a buyer might sign a written agreement that makes them responsible for their agent’s fee. The agreement sets out the amount, as a percentage or a flat fee, and when it is due.

If the buyer wants the seller to cover some or all of that fee, it has to be put in writing as well, and the seller can accept or decline.

Keep in mind that the seller is not automatically required to pay any part of the buyer’s agent fee. Both sides negotiate how much, if anything, the seller contributes, and if they cannot agree, there is no deal until they do.

Why people are questioning percentage-based commissions

In an analysis of nearly 1,500 public comments about real estate commissions from buyers, sellers and agents, close to 60% came from agents defending the quality and value of their work. About 20% came from buyers and sellers, who said commissions are too high.

Buyers and sellers generally agreed that agents work for their fees. The disagreement is about the percentage. Many do not see why the fee should rise simply because the house costs more. It is a fair point.

A commission is supposed to be the price of a service. It should have no bearing on the value of your home.

In my view, paying a percentage of your home’s price by default no longer makes sense. A commission should be the price of the service you receive from an agent, not a share of your home’s value.

As a seller, you should know exactly what the commission buys before signing with an agent. If it does not cover what you want, negotiate until it does, and only then sign, or find a different agent.

A good agent is worth paying for, but you should not have to pay more just because your house is worth more. A commission is fair when you get the service you expected for it.

What to do before you sign

Nobody requires you to use a real estate agent. You can sell your own home if you are confident marketing it and negotiating. But a lot of work follows an accepted offer: inspections, appraisals, repairs, deadlines and steady communication with the buyer or their agent.

Whether you are buying or selling, negotiate the commission with every agent involved before you sign. It can help to talk to more than one agent and compare fees and levels of service.

You may decide to buy or sell on your own, or to work with an agent offering full service. If you choose an agent, negotiate the terms and get everything in writing: the commission and the service you expect for it.