New NAR Rules: Game Changer or Business as Usual?

Last summer, the National Association of Realtors (NAR) introduced rule changes that many believed would drastically alter the real estate landscape. Some experts predicted a collapse of the long-standing 6% commission model, with expectations that home buyers and sellers would benefit from significantly lower transaction costs.

Now, six months later, as we head into the 2025 spring homebuying season, the reality seems far less dramatic. Rather than ushering in a new era of reduced fees and increased transparency, the changes have had minimal impact on how real estate transactions are conducted.

The Expected Impact vs. Reality

The primary hope behind the new NAR rules was that commissions would decrease, making home purchases more affordable. In fact, some analysts speculated that real estate commissions could fall by as much as 25% to 50%. However, recent studies suggest that commissions have remained stable—and in some cases, even increased—since the changes took effect in August 2024.

For homes priced under $500,000, research from Redfin indicates that commissions have actually ticked upward. This suggests that the market has adapted in a way that maintains the status quo, rather than disrupting the traditional structure of real estate transactions.

Key Changes: What Actually Happened?

Two main rule adjustments were intended to shake up the industry:

1. Mandatory Buyer Representation Agreements – Agents working with buyers must now have a signed agreement before touring homes. The intent was to make commission structures clearer upfront, theoretically giving buyers more control over how their agents are compensated. While this forces early conversations about fees, it has not led to widespread changes in commission payments.

2. Removal of Commission Offers from MLS Listings – Previously, MLS databases showed commission details to all participating agents. Critics argued that this led some buyer agents to steer clients toward properties offering higher commissions. While the new rule prevents commissions from being displayed, in practice, agents are still discussing compensation with each other off-platform, making the change largely symbolic.

Business as Usual

Despite initial speculation, sellers continue to offer commission payments to buyer’s agents much as they did before. The structural incentives within real estate transactions remain intact, and rather than increasing transparency, some argue that the changes have made commission structures even more opaque.

Additionally, while these reforms were part of a $418 million settlement resolving allegations of anti-competitive practices, they have done little to disrupt the entrenched commission model that has defined U.S. real estate for decades.

Could Change Still Be Coming?

The envisioned changes could still come to fruition in a strong seller’s market, but the high interest rates and slow and steady market growth of the past three years do not lend themselves to sellers refusing to offer buyer-side compensation. If conditions shift, we may yet see a significant change in how agents are paid.

The Positive Takeaway: Why Buyers and Sellers Benefit From Strong Representation

While the changes haven’t shaken up the industry as expected, they do highlight the value of working with a dedicated real estate professional.

For buyers, having a dedicated buyer’s agent ensures someone is negotiating on their behalf, providing market insights, and guiding them through an increasingly complex process. A skilled agent can save buyers money and time while helping them find the best possible home for their needs.

For sellers, working with an experienced agent who understands the evolving landscape can be a major financial advantage. A strong listing agent can help sellers navigate how to structure buyer-side compensation strategically, potentially saving money while still ensuring their property remains attractive in a competitive market.

Final Thoughts

For all the anticipation, the sweeping industry changes that some expected have failed to materialize. However, the importance of working with knowledgeable, experienced professionals remains unchanged. Whether you’re buying or selling, having the right agent by your side can make all the difference in ensuring a smooth and successful transaction.