NAR Settlement Update 2026: What Home Buyers and Sellers Need to Know

The National Association of REALTORS® (NAR) settlement, finalized with court approval in late 2024, continues to reshape the residential real estate landscape well into 2026. Stemming from antitrust lawsuits alleging inflated broker commissions, the $418 million agreement (with additional related settlements pushing total relief over $1 billion) introduced sweeping practice changes effective August 17, 2024. These reforms emphasize transparency, negotiation freedom, and consumer choice—without fundamentally altering the core value REALTORS® provide.

Nearly 18 months later, the changes remain in full effect amid ongoing appeals (oral arguments occurred in early January 2026, with rulings pending). In Florida, where active adult communities like The Villages see steady turnover, these shifts influence everything from listing strategies to buyer negotiations—especially as mortgage rates hover around 5.87-6.16% for 30-year fixed loans (per recent Zillow and Freddie Mac data), boosting affordability and potential sales volume.

This post breaks down the key implications for home sellers and home buyers, drawing from official NAR resources (including facts.realtor FAQs updated through late 2025), exploring benefits, challenges, edge cases, and practical advice.

For Home Sellers: Greater Control and Negotiation Power

The settlement empowers sellers with more flexibility in how (and whether) to compensate buyer brokers, moving away from traditional assumptions.

Key Changes:

• You choose whether to offer compensation to buyer brokers. This is optional and can serve as a marketing tool to attract more buyers in competitive markets.

• Any offer must be conspicuously disclosed and approved in writing by you before your listing broker makes payment or an offer to another broker.

• Offers of compensation cannot appear on Multiple Listing Services (MLS). Your agent can promote them via off-MLS channels like social media, flyers, websites, or direct outreach.

• Seller concessions remain allowed on MLS (e.g., covering buyer closing costs, repairs, or rate buydowns)—as long as they're not conditioned on using a specific buyer broker.

What Hasn't Changed:

• Compensation for your listing agent is fully negotiable.

• REALTORS® adhere to the Code of Ethics, prioritizing your best interests with transparent discussions.

Nuances and Implications:

• In seller-friendly markets like parts of Florida, offering buyer broker compensation (even off-MLS) can broaden appeal, especially for first-time or out-of-state buyers unfamiliar with local costs.

• Edge case: In low-inventory areas, not offering compensation might reduce showings if buyers prioritize agents they pay directly—potentially lengthening days on market.

• Broader impact: Greater negotiation freedom often leads to lower overall commissions (some reports show buyer agent rates dipping slightly to ~2.3-2.4% in late 2025), benefiting sellers' net proceeds.

• Tax/closing nuance: Concessions can improve affordability without direct commission ties.

Practical Advice: Work closely with your REALTOR® to craft a strategy. Discuss your goals—maximize net proceeds, speed of sale, or broad exposure—and explore creative off-MLS offers. In The Villages, where many sales involve retirees relocating, highlighting concessions for closing costs can be particularly effective.

For Home Buyers: Enhanced Transparency and Written Agreements

Buyers now engage with agents under clearer terms, fostering informed partnerships.

Key Changes:

• Written buyer agreement required before touring homes (in-person or live virtual) with an MLS-participating agent.

• Agreements must detail services, compensation (objective amounts like flat fees, percentages, or hourly rates—not open-ended references to seller offers), prohibit excess compensation from other sources, and state that fees are fully negotiable (not set by law).

• Sellers may still offer compensation to your agent (off-MLS), but you can negotiate who pays what.

• No agreement needed for casual interactions like open houses or general inquiries.

What Hasn't Changed:

• REALTORS® must act in your best interest per the Code of Ethics.

• You can accept seller concessions (e.g., closing costs).

• Full access to MLS listings and market data.

Nuances and Implications:

• Agreements promote clarity—buyers understand exactly what services (market analysis, negotiation, paperwork) they receive and costs involved.

• Edge case: Unrepresented buyers at open houses or new constructions can tour without commitment, but serious representation requires an agreement upfront.

• In a stabilizing rate environment (~5.87-6.16% for 30-year fixed as of mid-January 2026), buyers may find more leverage to negotiate agent fees or concessions.

• Potential downside: Some buyers pay agents directly if sellers don't offer compensation, though many reports indicate minimal disruption so far.

Practical Advice: Shop agents like any professional—ask about services, experience in your area (e.g., 55+ communities), and fee structures. Review the agreement carefully before signing; it's negotiable. In Florida's retiree-heavy markets, buyers often value agents who specialize in lifestyle transitions.

Broader Market Considerations in 2026

These changes align with a market showing signs of rebound: NAR forecasts a 14% increase in existing-home sales nationally, driven by lower rates, rising inventory, and improved affordability. In Florida, stabilizing insurance trends and steady demand in areas like The Villages could amplify benefits.

However, appeals create some uncertainty—though practice changes persist regardless. Scams remain a risk; always verify through official channels like facts.realtor.

Final Thoughts The NAR settlement promotes a more transparent, consumer-driven market where choices abound. Sellers gain control over incentives; buyers get clear expectations. In 2026's evolving environment—with rates dipping below 6% in many cases—this fosters opportunities for informed decisions.

Partner with a knowledgeable REALTOR® to navigate these rules effectively. Reach out—I'm here to discuss how these changes apply to your situation.