What Does the NAR Settlement Mean for Buyers and Sellers?

As someone who’s been serving buyers and sellers in Los Angeles County for over 20 years, I’ve experienced my fair share of industry changes. But the latest updates to the National Association of Realtors (NAR) rules might be some of the most impactful ones yet. If you’re feeling unsure about what these new changes mean for you, don’t worry—you’re not alone. I’m here to break it all down and show you how these updates can actually make the buying and selling process smoother, more transparent, and more committed for everyone involved.

What’s Changing for Buyers?

The biggest shift for buyers is the requirement for a written agreement before touring homes. In the past, it wasn’t unusual for a buyer to casually look at properties without committing to a specific agent. Now, a signed contract is required before any home tours—whether in-person or virtual.

At first, this might seem like a hassle, but trust me, it’s actually a good thing. I’ve worked with many clients who started off casually browsing and eventually found themselves overwhelmed by the process. With this new rule, both you and your agent are making a commitment from the get-go. As a buyer, you’re showing that you’re serious, and in return, your agent is fully dedicated to helping you. It’s a two-way street of loyalty.

A couple I worked with recently were initially hesitant to sign an agreement because they weren’t sure they wanted to commit to an agent just yet. After a few weeks of searching on their own, they realized the value of having someone in their corner who understood the market and could negotiate on their behalf. Once we had that agreement in place, we found their dream home within days. They later told me that the agreement felt like a “turning point” because it showed we were all in it together.

Positive Impact on Buyers:

• Clarity from the Start: You’ll know exactly what services your agent is providing and what you’ll be paying for. No surprises.
• Commitment Equals Results: The agreement signals that both parties are serious about the transaction, which helps weed out tire-kickers and makes the process more efficient.

What’s Changing for Sellers?

For sellers, the major change is the removal of the compensation offer field from the MLS (Multiple Listing Service). This used to be the section where listing agents would display the commission offered to buyer’s agents. Going forward, that compensation won’t be included in MLS listings and will need to be communicated directly through other means.

If you’re selling your home, you might wonder, “How will this affect me?” In reality, this change gives sellers more control over how they negotiate. You still have the option to offer compensation to buyer agents—it just won’t be displayed on the MLS. I’ve seen firsthand how flexibility in negotiating commissions can actually benefit sellers by giving them more leverage in discussions with buyer agents.

I once helped a seller in West LA who wasn’t getting the traction they had hoped for. By adjusting the compensation terms we offered to buyer agents, we were able to increase interest and get multiple offers. This kind of flexibility will now be more commonplace, giving sellers a greater say in how they market their properties.

Positive Impact on Sellers:

• More Negotiating Power: You can still offer incentives to buyer agents, but now you have more options in how you do it.
• Tailored Marketing: With compensation offers moving off the MLS, you have more control over how you market your home and attract buyer agents.

How Do These Changes Benefit Both Buyers and Sellers?

While these updates might feel like a shift, they actually foster transparency and trust on both sides. Buyers are more informed about the costs they’ll be paying, and sellers have increased flexibility in how they approach negotiations. This new system builds stronger, more committed relationships between agents and their clients, which leads to smoother transactions.

Over the years, some of my most successful transactions have been with clients who understood the importance of commitment and transparency. When both parties are fully invested, the process moves faster, and the outcomes are often better. Whether you’re buying or selling, these new rules are designed to create that kind of environment—one where everyone is serious, informed, and ready to close the deal.

How the NAR Settlement Changes Could Impact Your Next Move

The NAR rule changes, while a departure from the old ways, bring clarity, commitment, and control to the table. Whether you’re a buyer entering the market or a seller looking to maximize your home’s value, these updates ensure that you’re working with professionals who are equally invested in your success. With clearer guidelines and a focus on loyalty, both buyers and sellers will find that these changes lead to more transparent and efficient real estate transactions.

If you have questions or want to learn more about how these changes could affect your home-buying or selling journey, I’m just a phone call away. With over two decades of experience in Los Angeles real estate, I’m here to help you navigate these changes and ensure your next move is your best one.