What the NAR Settlement Means for Sellers in 2025
Commission Cooperation Simplified by Initial Property Management | 818.464.4847
If you’ve heard the buzz about the recent National Association of Realtors (NAR) settlement, you might be wondering what it really means for home sellers. At Initial Property Management, we believe in keeping things simple, clear, and strategic — especially when market norms start to shift.
Let’s walk through what’s changed, what hasn’t, and how to manage expectations around paying a buyer’s agent in today’s evolving real estate landscape.
What Changed in 2024?
Traditionally, sellers paid both their listing agent and the buyer’s agent as part of the transaction. This commission offer was typically advertised on the MLS (Multiple Listing Service), which helped buyers access professional representation without paying out of pocket.
But as of mid-2024, the rules around commission cooperation have changed:
- Sellers are no longer required to offer commission to a buyer’s agent through the MLS.
- Buyers may now be responsible for compensating their own agent, negotiating it in the offer, or choosing to go without an agent altogether.
These changes aim to increase transparency and competition. But for sellers, they raise an important question: should I still offer to pay a buyer’s agent?
What Hasn’t Changed?
While the headlines are dramatic, the fundamentals are still familiar:
- Sellers can still offer a commission to a buyer’s agent.
- Buyers still use agents, and those agents still expect to be paid.
- It’s still up to the seller to craft a smart listing strategy that attracts the best offers.
At Initial Property Management, we help sellers evaluate whether offering a commission aligns with their goals and their market conditions.
Should I Offer a Commission to the Buyer’s Agent?
In a fast-moving market with low inventory, you may not need to offer a buyer-side commission to attract interest. However, in more balanced or competitive markets, offering compensation to the buyer’s agent could make your property stand out — and even net you more money.
Think of it this way — a buyer may choose between two similar properties, but if one includes compensation for their agent, that home could appear more attractive.
It’s not about what’s “required” anymore. It’s about what’s strategic.
Managing Seller Expectations in 2025
As a seller, it’s important to stay flexible and focus on what works best for your specific situation. Here are three key tips:
- Consult with your listing agent about trends in your local market.
- Be willing to adapt — if your listing isn’t getting the traction you expected, offering a buyer’s agent incentive might be the key to unlocking offers.
- Remember, it’s your decision — but your decision should be based on what gives you the strongest position in negotiations.
At Initial Property Management, we help sellers make confident, well-informed choices based on the latest market data.
The Bottom Line
The NAR commission settlement didn’t eliminate buyer’s agents, it simply changed how compensation is structured. As a seller, this gives you more flexibility — but also means your listing strategy matters more than ever.
At Initial Property Management, we take pride in guiding sellers through every market shift with transparency and care. If you’re thinking about selling your property, or just want to understand your options, we’re here to help.
Call us today at 818.464.4847 or [contact us online] to schedule a seller strategy session that’s custom-tailored to you.
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