The 2024 NAR Settlement, Two Years Later: What It Actually Changed for Buyers and Sellers in Washington

Quick Answer: The August 2024 NAR settlement fundamentally changed how buyer’s agent compensation works in real estate transactions nationwide. Two years in, Washington State buyers now routinely sign buyer representation agreements before touring homes, and seller-paid buyer’s agent commissions are negotiated rather than assumed. The sky didn’t fall — but the transaction process is meaningfully different, and both buyers and sellers benefit from understanding the new landscape before they enter the market.

What the NAR Settlement Actually Required

The settlement, which resolved antitrust litigation over the traditional commission-sharing model, had two primary requirements that took effect in August 2024:

• MLS platforms could no longer display offers of buyer’s agent compensation. Before the settlement, sellers routinely offered a split commission (typically 2–3%) to buyer’s agents through the MLS. That field was removed from MLS listings entirely.
• Buyers must sign a written representation agreement before an agent can show them homes. Agents are now required to have a signed buyer representation agreement — specifying their compensation — before they can conduct property tours with a buyer.

The settlement did not set commission rates, ban sellers from paying buyer’s agent fees, or require buyers to pay their own agent out of pocket. Those are common misconceptions.

What Changed for Buyers in Washington

You Sign an Agreement Before You Tour

The most immediately noticeable change for buyers is the buyer representation agreement. Before touring homes, you now sign a contract with your agent that specifies their compensation and the term of the relationship. This is not unusual in other professional services contexts — attorneys and financial advisors have always worked under written agreements — but it was a significant shift from how real estate traditionally operated.

In Washington State, NWMLS-member agents were already using buyer representation agreements before the national settlement, so the change was less dramatic here than in some other states. The settlement essentially nationalized a practice Washington had already adopted.

Your Agent’s Compensation Is Negotiated, Not Assumed

Two years in, the buyer representation agreement has created more explicit conversations about agent compensation. Buyers now routinely discuss — and sometimes negotiate — the buyer’s agent fee before beginning their home search. Rates that once seemed fixed at 2.5–3% are now more visibly variable, and agents who provide exceptional service or specialized expertise can articulate their value more clearly.

Sellers Can Still Pay Your Agent — and Most Do

One fear that circulated in 2024 was that buyers would suddenly be forced to pay their agent out of pocket, effectively adding $20,000–$35,000 in cash costs to already expensive transactions. This has not materialized as a systematic outcome. In most Northshore transactions, sellers still offer buyer’s agent compensation — they just do it outside the MLS, through the purchase and sale agreement negotiation, or through a listed concession in the listing remarks.

Why? Because sellers in competitive markets understand that offering buyer’s agent compensation attracts more buyers. A seller who refuses to cover buyer’s agent fees may face a smaller buyer pool and ultimately a lower sale price — an unintended consequence that market forces have broadly corrected for.

What Changed for Sellers in Washington

You Now Pay Your Listing Agent — Period

Pre-settlement, the typical listing agreement required the seller to pay a total commission (e.g., 5–6%) that was then split between the listing agent and buyer’s agent. That structure is now disaggregated. The seller negotiates and pays the listing agent’s fee directly. What the seller offers to the buyer’s agent is a separate decision.

Buyer’s Agent Compensation Is a Strategic Lever

Sellers now have more explicit control over what they offer buyer’s agents, and good listing agents help sellers think through this strategically. Offering a competitive buyer’s agent commission (typically 2–2.5% in the current Northshore market) maximizes buyer pool. Offering nothing or a low amount creates friction — buyer’s agents may still show the home, but their buyers may look elsewhere if they can’t structure the fee into the transaction.

The practical approach most sellers take: include an offer of buyer’s agent compensation in the listing, priced competitively for the market tier. In higher price points (above $1.5M), some sellers negotiate this as a concession in the purchase agreement rather than advertising it upfront.

What Hasn’t Changed

Despite the industry disruption surrounding the settlement, several things are meaningfully the same two years later:

• Total transaction costs are similar. The settlement was predicted to dramatically lower overall commission costs for sellers. In practice, commissions have declined modestly but not dramatically. Market forces — not mandates — are the primary driver of commission rates, and they were already declining before August 2024.
• The value of a good agent is unchanged. Whether you’re a buyer or a seller, the agent you work with has enormous influence over the outcome of your transaction. A skilled listing agent on a $1.1M Northshore home can mean the difference of $50,000+ in sale price. The settlement clarified compensation structures; it didn’t change the underlying value that expertise creates.
• Buyers still largely have agent representation. Predictions that buyers would increasingly go unrepresented have not materialized at scale. The complexity of home purchases — inspections, contract contingencies, title issues, negotiation — continues to make professional representation valuable for most buyers.

Practical Advice for Washington Buyers and Sellers Today

For buyers: Expect to sign a buyer representation agreement before your first home tour. Read it carefully — understand the term length, the compensation structure, and the exit provisions if things aren’t working out. The best agents offer fair, market-rate compensation with clear value in return. Don’t assume you’ll have to pay your agent out of pocket — in most cases, seller-paid compensation or a seller concession covers the buyer’s agent fee.

For sellers: Work with your listing agent to set a strategic compensation offer for the buyer’s agent. Understand that this is now a negotiating variable — and that being competitive on this point influences how many buyers’ agents actively show your home. The listing agent fee and the buyer’s agent offer are separate items in your listing agreement.

Frequently Asked Questions

Do I have to pay my buyer’s agent out of pocket after the NAR settlement?

No — not automatically. In many Washington transactions, the seller still offers buyer’s agent compensation, either as a stated concession or negotiated as part of the purchase agreement. You and your agent agree on their fee in your buyer representation agreement, and you then negotiate how that fee gets covered in your offer. Many buyers successfully roll this into their offer without any out-of-pocket payment.

Are real estate commissions lower now than before 2024?

Modestly, in some markets. The settlement has created more transparency and made commissions more negotiable — which has exerted downward pressure in some price ranges. But the data two years out doesn’t show a dramatic collapse in commission rates. Competition among agents and the value they deliver continues to be the primary determinant of fee levels.

What is a buyer representation agreement and do I have to sign one?

A buyer representation agreement is a contract between you and your agent that establishes the terms of your working relationship — including the agent’s compensation, the geographic scope of the search, and the term of the agreement. As of August 2024, agents are required to have this signed before showing you homes. You don’t have to work with any specific agent, but you do need to sign an agreement with whoever you choose to represent you.

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Questions about how the NAR settlement affects your specific situation? I’m Emily Cressey with HomePro Associates. Whether you’re buying or selling in King or Snohomish County, I’ll walk you through exactly how compensation works in our market — no surprises, no fine print you didn’t understand. Reach out here.

Emily Cressey | HomePro Associates | WA License #20109399 | Verify at WA DOL