⚡ Effective August 17, 2024
NAR Settlement Changes
How the $418 million settlement changed real estate commissions forever
💥 $418 Million Settlement Impact
⚖️
$1.8B
Initial Jury Verdict
💰
$418M
Final Settlement
📅
Aug 2024
Rules Effective
🏠
2M+
Agents Affected
📅 Settlement Timeline
Oct 2023
🔥 $1.8B Jury Verdict
Federal jury found NAR liable for anticompetitive practices in Missouri lawsuit
Mar 2024
🤝 $418M Settlement
NAR agrees to settle and fundamentally change commission practices
Aug 2024
✅ New Rules Take Effect
Mandatory buyer agreements and MLS changes implemented nationwide
❌
Before August 2024
The Old Way
- • Seller automatically paid both agent commissions
- • Buyer agent compensation displayed on MLS
- • Standard 6% commission split 50/50
- • Buyers thought their agent was "free"
- • Limited commission negotiation
✅
After NAR Settlement
The New Reality
- • Buyers can pay their own agent directly
- • No compensation offers displayed on MLS
- • More flexible commission structures
- • Mandatory written buyer agreements
- • Increased transparency and negotiation
📈
Commission Rates
Average rates increased from 5.32% to 5.44% in 2025, showing minimal impact despite dire predictions
+0.12% Increase
🤝
Buyer Relationships
Stronger buyer relationships needed as agents must clearly demonstrate value and justify compensation
Value-First Approach
💼
Business Models
More diverse compensation structures emerging: flat fees, hourly rates, and performance-based models
Innovation Required
Calculate Your Post-Settlement Earnings
See how the new rules affect your commission calculations
🧮 Use Updated Calculator →