NAR Commission Changes: What Central Florida Buyers and Sellers Need to Know

In March 2024, the National Association of Realtors (NAR) reached a settlement in a class-action lawsuit that alleged the traditional commission structure — where sellers pay both their own agent and the buyer’s agent — artificially inflated agent fees and limited competition. NAR agreed to pay $418 million and, more importantly, to change two longstanding rules.

Those changes took effect on August 17, 2024:

Change #1: Offers of buyer’s agent compensation can no longer be advertised on MLS listings. Previously, sellers routinely posted a specific commission offer to buyer’s agents directly on the MLS. That practice is now prohibited on MLS platforms.

Change #2: Buyers must now sign a written agreement with their agent — defining services and compensation — before touring a home. This was the bigger practical change for agents day-to-day.

Here’s what the headlines mostly got wrong: sellers can still pay the buyer’s agent commission. They always could, and they still do — it just has to be negotiated outside of the MLS now, typically as part of the purchase contract or through the seller’s listing agreement.

In practice, here in Central Florida, the market has largely continued as before. Most sellers are still offering buyer’s agent compensation — either because their listing agent builds it into the seller’s agreement, or because it gets negotiated into the offer. Sellers who refuse to cover it risk a smaller buyer pool, since many buyers (especially first-timers) don’t have the cash to pay their agent out of pocket on top of a down payment and closing costs.

In over a year since the changes went into effect, I’ve had exactly one buyer pay my brokerage directly. Everything else has proceeded as it always did. That may change if the market heats up significantly — in a seller’s market where homes move fast, buyers may find themselves in a weaker negotiating position. But right now, it’s largely business as usual.

The change that has the most real-world impact for buyers is the written agreement requirement. Before August 2024, a buyer could tour homes with an agent indefinitely with no formal commitment. Now, before I can show you a home, we need a signed agreement in place that spells out what I’ll do for you and how I’ll be compensated.

I understand that can feel like a lot to ask of someone who just wants to see a house. That’s why I handle it differently.

Rather than asking a first-time buyer to sign a multi-month exclusive representation agreement before we’ve even had a real conversation, I use a one-time Showing Agreement — a short-form document from Florida Realtors® that covers a single showing day or a small number of specific properties. You’re not locked in. If we see a home and you decide you’d rather work with someone else, that’s fine. The agreement expires and you move on. My goal is to earn your trust during that showing — not contractually obligate you to me before I’ve had the chance to.

You’ll sign something before we tour homes — that’s not negotiable under current regulations. What is negotiable is how much, for how long, and under what terms. My approach is to make that process as low-pressure as possible, starting with a short-form showing agreement so you can see how I work before committing to anything longer-term.

In most cases, my compensation as your buyer’s agent is still going to come from the seller’s side — either through the listing agreement or negotiated into the purchase contract. If that changes for a specific property, I’ll tell you upfront before you’re in any position to be surprised by it at the closing table.

The bottom line: this change was designed to bring more transparency to the process. I’m in favor of that. You should know exactly who represents you, how they’re getting paid, and what they’ve committed to doing for you. That’s a reasonable expectation, and it’s how I’ve always tried to operate.

You’re no longer required to offer buyer’s agent compensation. You can choose not to. But here’s the practical reality: buyers who can’t get their agent compensated through the transaction may simply look elsewhere. In a normal or buyer-friendly market, limiting your buyer pool is a risk that usually costs you more than the commission you’d save.

Most of my sellers still offer buyer’s agent compensation — it stays off the MLS now but it’s addressed in the listing agreement and in how we structure offers. We’ll have an honest conversation about what makes sense for your specific situation, price point, and how the current market is moving.

One thing that hasn’t changed: commissions are, and always have been, negotiable. If you’re thinking about selling and want to talk through what your costs would look like, reach out. No obligation.