The real estate world in the U.S. is changing fast. The National Association of Realtors (NAR) recently introduced new rules that are already impacting how people buy and sell homes. Whether you’re a first-time buyer or a seasoned seller, understanding these new laws is key to making smart real estate decisions in 2025.
In this article, we explain the new NAR real estate laws in simple terms, how they affect buyers and sellers, and what you can do to stay ahead in the market.
What Are the New NAR Rules?
In early 2024, the NAR announced a major settlement after facing lawsuits over how real estate commissions were handled. As part of this settlement, the organization agreed to make changes that directly affect how agents are paid and how listings are managed.
Key changes include:
- No longer allowing commission offers on MLS platforms.
Sellers can no longer advertise how much they’ll pay a buyer’s agent on Multiple Listing Services (MLS). - Buyers must now sign written agreements with their agents.
Buyers are now required to sign a contract with their real estate agent before touring homes. This agreement will clearly explain the agent’s commission and services. - Greater transparency on agent fees.
Buyers and sellers will now know exactly who pays which commission and for what services.
For full details, you can view the official NAR statement here.
How Buyers Are Affected
1. Buyers May Have to Pay Their Agent Directly
In the past, sellers often covered the commission for the buyer’s agent as part of the deal. With the new NAR rules, buyers may now need to pay their agents out-of-pocket, or negotiate that fee into their offer.
This could make homebuying more expensive for some buyers, especially those who are already struggling with high home prices and mortgage rates.
2. More Clarity, Less Confusion
On the positive side, buyers will now get a clear written agreement from their agents. This helps avoid misunderstandings about fees and services. Knowing exactly what you’re paying for can help build trust between the buyer and the agent.
3. Stronger Negotiation Power
Since buyer commissions are no longer baked into MLS listings, buyers have more room to negotiate better deals with sellers. However, this will depend on market conditions and the agent’s willingness to adapt.
How Sellers Are Affected
1. No More Offering Buyer’s Agent Commission Publicly
Sellers can still choose to offer a commission to a buyer’s agent, but they cannot advertise it on MLS. This change is meant to avoid the appearance of price-fixing or steering buyers toward higher commissions.
2. Possibly Lower Selling Costs
Some sellers might benefit by saving money on commissions, especially if the buyer is willing to cover their own agent’s fee. However, if the property gets fewer showings because agents aren’t motivated by commission offers, sellers may need to adjust prices or offer other incentives.
3. Need for Smarter Pricing and Marketing
With less influence over buyer agents, sellers must rely more on good pricing strategies, staging, and digital marketing to attract buyers. Agents may also need to update how they promote listings, focusing more on the property’s strengths than on agent incentives.
Impact on Real Estate Agents
1. Increased Transparency
Agents on both sides now need to be more open about their fees and value. This can build stronger relationships with clients but may also lead to fewer deals if clients refuse to pay out of pocket.
2. Competitive Market
Agents will now compete based on skill, service, and value — not just MLS exposure. This could drive up professionalism across the industry.
What Should Buyers and Sellers Do Now?
For Buyers:
- Ask your agent for a clear written agreement before touring homes.
- Be ready to negotiate fees or include them in your offer.
- Shop around for agents who provide the best value for your budget.
For Sellers:
- Work with agents who know how to market creatively without relying on MLS commission offers.
- Consider offering buyer incentives if needed to make your home more attractive.
- Focus on strong pricing and online visibility.
The Future of Home Buying and Selling
These new NAR laws are a big step toward transparency in real estate. But they also come with challenges. Buyers must now think more about where their money goes, while sellers need to work harder to stand out in the market.
As the dust settles, expect tech-driven platforms and independent real estate models to gain more ground. If you’re entering the market in 2025, staying informed will help you make smarter, faster, and more cost-effective decisions.
For tips on how to choose the right agent under the new rules, check out Zillow’s guide.
Final Thoughts
The NAR’s new real estate laws are reshaping how homes are bought and sold in the U.S. While they aim to create fairer and more open transactions, they also demand more responsibility from buyers, sellers, and agents alike.
By understanding these rules and adapting early, you can save money, avoid surprises, and get the best value whether you’re buying your dream home or listing your current one.
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