What the NAR Settlement Really Means for Real Estate Commissions in 2025
By Meredith Amon, Licensed in Alabama and Florida
If you’ve been watching the news or talking to other homeowners, you’ve likely heard about the recent NAR settlement agreement and what many are calling “the end of real estate commissions.” As a full-time real estate advisor here in Orange Beach, Alabama, let me be clear:
There is no new law.
Nothing has officially changed.
Real estate commissions have never been fixed or mandated.
Unfortunately, there’s been a wave of misinformation—and as a result, many sellers believe they are no longer responsible for compensating a buyer’s agent. This misunderstanding is not only inaccurate, but it could also hurt your ability to sell your home in today's market.
Let’s Set the Record Straight: Commissions Are Always Negotiable
For decades, real estate commissions have been negotiable between sellers and their listing brokers. There has never been a law requiring a seller to pay a buyer’s agent, but the practice evolved to streamline the transaction and attract ready, qualified buyers to your property.
The NAR settlement only changes the way compensation is displayed in the MLS. That’s it. Sellers can still offer to pay a buyer’s agent. And if you’re serious about selling your home quickly and efficiently, I strongly recommend that you do.
Why Would a Seller Want to Pay a Buyer’s Agent Commission?
This is a question I’m hearing more and more. And my answer is simple: Because it benefits you.
Here’s how:
-
Your property gets more showings.
Agents are far more likely to bring buyers to listings where their professional compensation is clearly structured and paid at closing. -
You attract serious, qualified buyers.
Many buyers cannot afford to pay their agent out-of-pocket on top of their down payment and closing costs—especially in today’s market with higher interest rates. -
You position your home competitively.
In a buyer’s market like we’re seeing now in Orange Beach, refusing to pay a buyer’s agent is a fast track to longer days on market and lower offers.
Real-World Example: Why This Matters
Right now, I’m representing a wonderful buyer who was referred to me through my relocation department. As part of that agreement, I must pay a referral fee back to the relocation company.
Now imagine this scenario:
The seller of the home my buyer loves says, “I’m not paying a buyer’s agent.”
That means not only would I have to work for free, but I’d also owe money out of my own pocket to pay the relocation referral. That’s simply not sustainable—and it’s a big reason why many agents will avoid showing homes with unclear or zero buyer agent compensation.
In that case, who loses? The seller. Because their home gets fewer showings, less interest, and likely a lower sale price.
The Buyer’s Agent Does Just as Much Work
There’s a misconception that the listing agent does all the work and the buyer agent simply shows up with a client. That couldn’t be further from the truth.
A buyer’s agent:
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Prepares property tours
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Analyzes market comps
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Structures competitive offers
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Negotiates price and terms
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Coordinates inspections and repairs
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Reviews title, survey, insurance, and financing details
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Stays involved through closing—and beyond
And in many cases, the buyer’s agent spends months working with a client before an offer is even made.
What Sellers Should Know Moving Forward
If you’re selling your property and you decline to offer a commission to a buyer’s agent, understand that it may:
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Reduce the number of showings
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Discourage top agents from recommending your home
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Make your property less visible
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Force buyers to look elsewhere where representation is covered
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Ultimately cost you more through longer time on market and price reductions
Even though this is a buyer’s market, smart sellers still incentivize buyer agents to bring qualified buyers and get the deal done smoothly.
Final Thoughts From Meredith Amon
As a seasoned real estate advisor with over 20 years of experience selling luxury homes, I’ve seen market cycles come and go. What never changes is the importance of clear communication, fair representation, and strategic marketing.
Whether you're a seller confused by the headlines or a buyer unsure who pays who—I’m here to guide you with honesty and insight.
Visit www.searchthegulf.com to learn more about how I help buyers and sellers succeed across Orange Beach, Ono Island, and the entire Gulf Coast.
Let’s clear up the confusion and get you the results you deserve.
Meredith Amon
Gulf Coast Expert Real Estate Advisor
Licensed in Alabama and Florida
www.searchthegulf.com
meredith@searchthegulf.com
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