Advice for home owners February 2, 2025

What does the NAR Commission Settlement Mean for me as a Home Seller?

February 2, 2025  |  714-336-0394  |  Scot@CampbellRealtors.com | Broker of Record – Coldwell Banker-Campbell Realtors 

NAR’s recent settlement has led to several changes related to broker commissions that benefit sellers. 

The California legislature passed Assembly Bill 2992 as a result of the NAR settlement, and it went into effect on January 1, 2025.

As a home seller, you have a wide range of choices when it comes to listing your home.

Agents who are REALTORS® are a trusted source of advice and stand ready to help you navigate this complex process and make the choices that work best for you.

REALTORS® are still here to help you navigate the process of selling your home and are ethically obligated to work in your best interest.

Here is what the settlement and AB 2992 means for home sellers:

  1. Buyer Agents cannot show / tour properties with buyers until a Buyer Representation has been signed by the Buyer Agent and the Buyer.
  2. The amount of the Buyer Agent Compensation will be determined by negotiation between the Buyer and Buyer Agent and memorialized in a written Buyer Representation Agreement.
  3. Since the Buyer must agree to the amount of the commission being paid, it is possible that commission rates will be lower for some Buyer Agents.
  4. You still have the choice of offering compensation to Buyer Agents, but the offer of compensation will no longer be published in the Realtor MLS.
  5. If you refuse to pay the Buyer Agent Compensation, the Buyer will be required to pay the commission in escrow per the terms of the Buyer Representation Agreement. However, if you refuse to pay compensation, this will reduce the amount of funds the buyer has for down payment and closing costs (which could result in a reduction in the maximum price the buyer can pay for your home).
  6. Making it known through your agent that you will pay a commission at close of escrow will increase the number of buyers who are “aware” that they can afford to purchase your home.
  7. When Buyer Agents contact your Listing Agent for showing instructions, you should have a script (approved in advance) that your agent will text to the Buyer Agent in regard to your willingness to pay compensation to the Buyer Agent.
  8. Transparency in your intent to pay a Buyer Agent Commission will increase the marketability of your property, and better incentivize Buyer Agents who are working in good faith to bring you a Buyer for your home.

Here is what the settlement doesn’t change:

  1. Buyers still want to purchase homes.
  2. Payment of commissions can be handled in such a way that effective buyer purchasing power remains the same.
  3. You can pay the Buyer Agent Commission in escrow just as you (and other sellers) have done in the past.
  4. Buyer Agents will still work hard to sell your home.
  5. Your Listing Agent can still advertise your listing via off-MLS platforms such as social media, flyers and websites.
  6. Your Listing Agent can still communicate your intention to offer compensation to Buyer Agents, but your agent cannot include it in the  Multiple Listing Service (MLS) or IDX (MLS data linked) Websites.
  7. You can still offer “Buyer Concessions” and have your Listing Agent publish the concessions in the MLS. An example of a concession you could have your agent publish is a Credit to the Buyer in escrow for buyer closing costs.
  8. Compensation for your Listing Agent remains fully negotiable, and with your consent can act as a Dual Agent representing both the buyer and seller.
  9. You still have choices on the commission payable to the Buyer’s Agent. Work with your agent to understand the full range of Buyer Agent compensation choices you have when selling your home, then choose the option you feel best fits your circumstances and marketing strategy.
  10. If your agent is a REALTOR®, they must still abide by the REALTOR® Code of Ethics and have clear and transparent discussions with you about compensation.

When finding an Listing Agent to work with, be sure ask questions about Buyer Agent compensation transparency techniques and discuss what compensation you would like to offer Buyer Agents.

Final Thoughts

Selling your Huntington Beach home doesn’t have to be overwhelming. By understanding the key steps—from pricing and contingencies to commissions and timing—you can navigate the process confidently and maximize your home’s value.

Important tip:  Do not assume listing your home with a big “team” or “group” will result in you working with the most knowledgeable and experienced agent.  While the “teams” tout their success in closing many homes and being #1 (in the state, country, or universe), the fact is they have many realtors who give “credit” to just one “team leader”.  When listing your home, you may speak to that team leader initially, but your file will most likely be passed to a junior associate for the remainder of the transaction. The junior associate will have nowhere near the education, experience, and skill to be found in a top individual Realtor working in your market. A top individual agent will have assistants that help with photography, marketing, and transaction paperwork, but the important transaction tasks will be handled by the Realtor you hired!