How the NAR Settlement Changed Real Estate | The Power Agents
Confused about the NAR settlement and what it means for buyers and sellers in the Tri-Cities? The Power Agents break it down in plain language.
Steve and Emily Danner
7/12/20263 min read
How the NAR Settlement Changed Real Estate — And What It Means for You in the Tri-Cities
If you've bought or sold a home in the last year or so, you may have noticed things feel a little different. More paperwork upfront, different conversations about agent compensation, and maybe some confusion about who pays what. That's not your imagination — the real estate industry went through one of its biggest shifts in decades, and we want to explain what actually changed and what it means for you here in Northeast Tennessee.
What Was the NAR Settlement?
In March 2024, the National Association of Realtors reached a landmark settlement resolving antitrust lawsuits related to how agent commissions were handled. The new rules took effect on August 17, 2024, and changed two things in a meaningful way: how buyer's agent compensation is communicated, and what buyers are required to sign before working with an agent.
What Changed for Sellers
Before the settlement, sellers typically paid a total commission — often in the range of five to six percent — that covered both their listing agent and the buyer's agent. That buyer's agent compensation was advertised directly on the MLS for all to see.
That's no longer allowed. Sellers can still choose to offer compensation to a buyer's agent, and many do because it makes their home more attractive to a wider pool of buyers. But that offer can no longer be listed on the MLS. Instead it's communicated directly between agents or negotiated as part of the offer itself.
The bottom line for sellers: you have more flexibility than before, but also more decisions to make. Your listing agent should be walking you through your options and helping you determine the right strategy for your specific situation.
What Changed for Buyers
The biggest change for buyers is the written buyer representation agreement. Before touring homes with an agent, buyers are now required to sign a formal agreement that spells out what services the agent will provide and how they will be compensated. This is a good thing — it creates transparency and ensures there are no surprises at the closing table.
Buyers also need to understand that agent compensation is now part of the negotiation. In many cases sellers still offer to cover the buyer's agent fee, and buyers can also request it as part of their offer. But it's no longer automatic, and it needs to be addressed clearly from the start.
A Word About How We Handle This at The Power Agents
We think transparency around compensation is long overdue, and we've embraced these changes fully. When we work with buyers, we explain exactly how we're compensated before we ever open a door. When we work with sellers, we walk through the options and help them make an informed decision about what to offer.
One thing that sets us apart: we don't practice dual agency. We don't believe one agent can truly represent both a buyer and a seller in the same transaction — the interests are simply too different. When a situation arises where both the buyer and seller want to work with us, we default to facilitator status. As a facilitator, we assist both parties in completing the transaction without acting as an advocate for either side. It's an honest approach, and we think our clients deserve nothing less.
What Hasn't Changed
Agent commissions have always been negotiable — the settlement just makes that clearer. The fundamentals of a good real estate transaction haven't changed either: honest advice, local knowledge, and an agent who puts your interests first. That's what we've always done, and it's what we'll keep doing regardless of what the rules say.
If you have questions about how any of this affects your specific situation — whether you're thinking about buying, selling, or just trying to understand the landscape — we'd love to talk. Reach out at thepoweragents.biz or call us at 423-747-7981.
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Emily Danner
Steve Danner
Tennessee Firm License: 266782