Realtor Commission Rules After the 2024 Settlement
Real estate commissions have always been negotiable and are not set by law or any government schedule. The 2024 NAR settlement changed how buyer-agent compensation is advertised and required written buyer agreements before touring a home, but it did not set or cap commission rates.
Realtor commission rules changed in 2024, but the most important fact did not: commissions are not set by law and are fully negotiable. The National Association of Realtors settlement, which took effect on August 17, 2024, changed how compensation is advertised and how buyer agents work with clients. It did not establish a rate, a cap, or a schedule, and no government body publishes an official average commission.
The core rule: commissions are negotiable
Real estate commissions have always been negotiable and are not set by law or any government schedule. There is no official government dataset of average commissions, which means any single national rate you see quoted is an estimate or a survey, not a legal standard. Sellers and buyers can negotiate the amount and structure of compensation with the agents they choose to work with. The Department of Justice has long taken the position that commission practices must not suppress competition, and the NAR settlement reflects that principle.
What changed after the settlement
Buyer-agent compensation is no longer published on the MLS. Before the changes, offers of compensation to buyer agents were commonly advertised through the multiple listing service. Under the settlement practice changes, those offers are no longer published on the MLS, and compensation for the buyer's agent is negotiated separately between the buyer and their agent, and potentially with the seller.
Written buyer agreements are required before touring a home. A buyer who wants to tour a home with an agent generally must first sign a written agreement that states the terms of representation, including how the agent will be compensated. This gives buyers a clear, upfront statement of what they are agreeing to.
Seller concessions may be communicated. Sellers can still choose to offer concessions that help cover a buyer's costs, and those concessions can be communicated outside the MLS. Concessions are a separate negotiation from the compensation the buyer agrees to pay their own agent.
What did not change
| Question | Answer |
|---|---|
| Are commissions set by law? | No. They never were, and they are fully negotiable. |
| Is there an official average rate? | No. There is no official government dataset of average commissions. |
| Can a seller still offer concessions? | Yes. Concessions may be communicated and negotiated. |
| Can agents still be paid? | Yes. Compensation is negotiated between the parties involved. |
| Did the settlement cap rates? | No. It changed practices, not price levels. |
How compensation is negotiated now
In practice, a seller negotiates the compensation for the listing side when signing a listing agreement. A buyer negotiates compensation for the buyer's agent in a written buyer agreement. If the seller agrees to contribute to buyer-agent compensation, that becomes part of the offer and the closing statement. Every one of those terms is negotiable, and none of them is fixed by law.
Because there is no official dataset, a seller who wants to compare options should ask each agent to explain their fee, what it covers, and how it compares to the services provided. The realtor commission calculator helps you see how a negotiated rate affects net proceeds, and it makes clear that the rate is an input you choose, not a number set by anyone else.
Why the settlement happened
The settlement grew out of antitrust litigation over how buyer-agent compensation was shared and advertised. The concern was that publishing compensation offers through the MLS could discourage buyers from negotiating and could soften competition among agents. The practice changes are meant to separate the compensation a buyer agrees to pay their own agent from anything a seller chooses to offer, so each negotiation stands on its own. The DOJ case page documents the antitrust matter for anyone who wants the primary record.
What sellers should ask
Ask each listing agent to put the fee in writing, explain exactly what it covers, and state whether any portion is shared with a buyer's agent. Ask how the agent will handle a buyer who requests a concession. Ask what happens if the buyer has signed a written agreement with a higher agreed rate than the seller is willing to contribute. A clear answer to those questions tells you more than any quoted average.
What buyers should ask
Before touring, ask the agent to explain the written buyer agreement, including the agreed compensation, the term, and how the agent will be paid if the seller contributes nothing. Ask whether the agreement is exclusive and how to cancel it. Understanding those terms up front avoids surprises at closing and makes the negotiation with the seller clearer.
How to compare agent proposals
A commission is only one part of what an agent offers. When comparing proposals, look at the services, the marketing plan, the pricing analysis, and the agent's track record, not just the percentage. Two agents can quote the same rate and deliver very different levels of service, and a lower rate is not automatically a better deal if the home sits on the market or sells for less.
It also helps to understand how the rate interacts with net proceeds. A change of a fraction of a percent moves the seller's bottom line, but so does the sale price. The home sale proceeds calculator lets you model both together, so you can see whether a lower rate or a higher price matters more in your situation.
Common mistakes
- Assuming a fixed or standard commission rate exists.
- Expecting buyer-agent compensation to appear on the MLS.
- Touring homes with an agent before signing a written buyer agreement.
- Confusing seller concessions with buyer-agent compensation.
- Relying on a quoted national average instead of your own negotiation.
How to verify the rules yourself
Read the primary sources. The NAR settlement FAQs describe the practice changes for buyers and sellers, and the DOJ case page documents the antitrust matter. Both are listed on the sources page, and the methodology page explains how claims on this site are sourced. For a plain-language walkthrough, see the new realtor commission rules.
Frequently asked questions
Are realtor commissions set by law?
No. Real estate commissions have always been negotiable and are not set by law or any government schedule. There is no official government dataset of average commissions.
What changed on August 17, 2024?
Offers of buyer-agent compensation are no longer published on the MLS, written buyer agreements are required before touring a home, and seller concessions may be communicated. Commissions remain fully negotiable.
Do I have to sign a written buyer agreement before touring a home?
Under the settlement practice changes, a buyer generally must sign a written agreement with their agent before touring a home. The agreement states the terms of representation and compensation.
Did the settlement cap commission rates?
No. The settlement changed practices, not price levels. It did not set, cap, or standardize commission rates.
Can sellers still offer concessions to buyers?
Yes. Seller concessions may be communicated and negotiated. They are separate from the compensation a buyer agrees to pay their own agent.
How can I check the rules myself?
Read the NAR settlement FAQs and the DOJ case page, both linked from the sources page. The methodology page explains how this site sources its claims.
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Cite this page
ListWithAgent Editorial Team. “Realtor Commission Rules After the 2024 Settlement.” https://listwithagent.com/reference/realtor-commission-rules/. Accessed 2026-09-12.
Sources
- DOJ Antitrust Division — U.S. v. National Association of Realtors — U.S. Department of Justice — justice.gov
- NAR — Settlement FAQs: practice changes for buyers and sellers — National Association of REALTORS® — nar.realtor
Every figure and rule on this page traces to the official publishers above. See our methodology.
Not a brokerage and not advice. List With Agent is not a real estate brokerage. We are an independent marketing and referral service that connects home sellers with licensed real estate agents. This page is general educational information, not legal, financial, or real estate advice.
By the ListWithAgent Editorial Team. Last updated 2026-09-12. Educational information only — not legal, financial, or real estate advice.