The real estate industry never stands still, and as a Realtor, keeping up with the latest changes isn’t just advisable, it’s essential. If you haven’t yet caught wind of the recent updates (or the collective groan from fellow agents), the National Association of Realtors (NAR) has introduced some significant changes to commission structures and agent practices. These new Realtor rules, part of the broader new Realtor law, are set to reshape how we do business. But don’t worry, we’re here to break it all down for you so you can stay ahead of the curve and continue providing top-notch service to your clients.
Let’s start with the headline: the MLS will no longer display offers of compensation for buyer agents. That’s right—what used to be a straightforward line item is now going to be handled behind the scenes due to this Realtor law change. But before you start imagining a world where everything is in the shadows, take a deep breath. The reality is that most sellers are still offering compensation; it’s just no longer broadcasted on the MLS.
So, what does this mean for you? As a Realtor, your job is to ensure that your clients—especially buyers—understand what they’re getting into before they step foot in a property. Transparency is still crucial under these new Realtor rules; it just means a bit more upfront discussion.
One of the most impactful changes is the removal of the "offer of compensation" field from the MLS. Beginning in mid-July, listing agents won’t be able to include this information in their MLS postings. Previously, listing brokers were required to enter a number in that field, even if it was just $0. But now, thanks to the settlement and the new Realtor law, NAR has decided that this field will no longer exist at all.
What does this mean for you? If you’re listing a property, you won’t be publicly disclosing the buyer’s agent compensation on the MLS. Instead, these negotiations will take place directly with your client—outside of the MLS. While this might mean more negotiation, it also offers the flexibility to tailor compensation agreements to each unique transaction.
Gone are the days when you could show homes to potential buyers without an agreement in place. With the new Realtor rules, buyers must sign an agreement before touring any properties. Yes, it’s another form to fill out, but think of it as defining the relationship from the start—just in writing.
The upside? You have options. You can offer exclusive or non-exclusive agreements, property-specific agreements, or even a “test drive” agreement that lets your clients work with you for 30 days before committing. This isn’t about trapping your clients into a long-term relationship they’re not ready for; it’s about setting clear expectations right from the beginning.
NAR is moving from a strong recommendation to a strict mandate on buyer agreements. This means that all MLS participants working with buyers must enter into written agreements before showing any homes. While this might sound like an extra hurdle, it’s actually a step toward greater transparency and ensures that both agents and clients are on the same page from the start.
Here’s where things get interesting. With the decoupling of listing and buyer-broker compensation, buyer agents will no longer automatically receive payment from the listing broker. But don’t worry—there are still three primary ways for buyer agents to get compensated:
NAR believes that these changes, which are part of the new Realtor law, will not negatively impact the industry and that market forces will continue to determine how agents are compensated. The takeaway? Be prepared to have more direct conversations about compensation than ever before.
Sellers, you’re in control! You’ve always had the power of choice, but now it’s more prominent than ever due to the new Realtor rules. You decide whether to offer compensation to a buyer’s agent. And with this power, you should also feel empowered to interview multiple agents to find the best fit for you. Just ensure that your chosen agent is well-versed in these new Realtor rules and can guide you through the pros and cons.
Any offer of payment to a buyer’s broker needs to be absolutely clear. With the removal of compensation details from the MLS, these terms must be discussed and agreed upon directly with your listing agent. It’s all about making sure everyone—especially you—is on the same page.
Here’s the big shift: Compensation details can no longer be communicated via the MLS. This is a significant part of the settlement and marks a considerable change in how transactions will be managed moving forward. But don’t stress—there are plenty of ways to communicate this information off the MLS. Our team has developed systems to make this process as seamless as possible for all parties involved, so you can focus on what really matters—getting your home sold at the best possible price.
Change can be intimidating, but it doesn’t have to be overwhelming. The key to navigating these new Realtor rules is clear communication. Whether you’re a buyer, seller, or Realtor, make sure you’re having the right conversations at the right times. Stay informed, ask questions, and always prioritize your clients’ best interests.
