What You Need To Know About Realtor Fees

How Realtor Fees Have Changed–And What It Means for You 

Whether you’re buying your first home or your fifth, a realtor is often a key part of the journey. But as of August 2024, how realtors get paid has changed—thanks to a major legal settlement involving the National Association of Realtors (NAR). These updates affect how commissions are handled and who pays whom, and they could impact your homebuying strategy. 

How Things Used to Work 

Before the settlement, sellers typically paid a total commission of 5%–6% of the home’s sale price. This fee was usually split between the seller’s agent and the buyer’s agent. Buyers didn’t pay their agent directly—though the cost was effectively baked into the home price. 

What’s Changed After the 2024
NAR Settlement—Here Are The Key Updates: 

Written Agreements Are Now Required.

Buyers must sign a written agreement with their agent before touring homes. This ensures transparency about services and compensation. 

Sellers Are No Longer Required to Offer Buyer-Agent Compensation.

Sellers can still choose to offer compensation to buyer agents—but they can’t advertise it on the MLS (Multiple Listing Service). These offers must now be discussed off-platform. 

Buyers May Need to Pay Their Agent Directly.

In some cases, buyers will need to negotiate for the seller to cover their agent’s fee—or pay it themselves. This could be an out-of-pocket cost unless it’s rolled into closing costs (if allowed by the lender). 

What This Means for Buyers

More Conversations, More Clarity.

You’ll need to talk with your agent early about how they’re compensated and what services they provide. This helps avoid surprises later. 

You Might Pay Your Agent Directly.

Depending on the deal, you may need to budget for your agent’s fee. Some sellers may still agree to cover it, but it’s no longer guaranteed. 

Skipping a Buyer’s Agent Doesn’t Always Save Money.

If you go without a buyer’s agent, the listing agent may keep the full commission—or the seller may reduce the total commission. Either way, you won’t have someone negotiating solely on your behalf. 

What This Means for Sellers

You Still Control the Commission You Offer.

You can still offer to pay a buyer’s agent—but you’ll need to communicate that outside the MLS. 

More Flexibility, But Also More Negotiation.

With fewer default rules, sellers and their agents may need to be more proactive in discussing commission terms with buyers and their agents. 

Why This Isn’t Necessarily a Bad Thing 

These changes aim to make real estate transactions more transparent. Buyers and sellers now have more control over how agents are paid—and more responsibility to understand the terms. 

A great agent still brings tremendous value: helping you find the right home, write a competitive offer, and negotiate the best deal. What’s changed is simply how that value is documented and paid for. 

Planning Ahead

Buying a home still involves several costs: down payment, closing costs, moving expenses—and now, possibly agent fees. The good news? Arkansas Federal Mortgage offers options like 100% financing and no down payment, which can help you keep more cash on hand. 

Want to learn more? Explore our mortgage offerings, talk with one of our lending experts, or download our free homebuyer guide.