Why Everyone is Talking About the NAR Settlement and What it Actually Means

🏡 “Why Everyone’s Talking About the NAR Settlement—And What It Means for You”

If you've been even remotely plugged into real estate news, you've probably heard rumblings about the big changes shaking up how agents get paid. The National Association of Realtors (NAR) recently reached a landmark settlement that’s flipping the script on commissions—and Philly buyers and sellers are already starting to feel it.

🤔 So... What Actually Changed?

Before: Seller’s agents typically offered a commission to buyer’s agents (often 2.5–3%), which was baked into the home’s list price.
Now: That offer doesn’t have to be advertised on the MLS anymore—and buyers may be expected to pay their own agent out-of-pocket unless it's negotiated another way.

💰 What This Means for Sellers

• More flexibility: You're no longer required to offer a buyer-agent commission—though many will still choose to as a strategy to attract more offers.

• Pricing matters: Homes may need to be priced with buyer commission in mind if you're expecting to net the same amount at closing.

🔑 What This Means for Buyers

• You now have negotiating power: Instead of commissions being hidden behind the curtain, buyers are seeing them clearly and can negotiate how it gets paid—whether by the seller, lender credit, or out-of-pocket.

• Work with agents who are transparent: You'll want someone who clearly explains their value and gives you a written agreement for their fee, especially now that you may be footing the bill directly.

📍How It Affects Philly Specifically

In competitive markets like Philadelphia—where prices remain high but affordability is tight—this could mean:

• Buyers leaning harder on down-payment assistance or closing cost credits

• Sellers incentivizing full-price offers with commission kickbacks

• More creative structuring in offer terms, like seller-paid buyer agent fees

🧠 Final Thoughts

This is a major shift. But honestly? It’s a good thing. It brings transparency to a system that needed it. It empowers buyers to choose agents based on value, not just who’s “free.” And it allows sellers to control their costs more intentionally.

Real estate’s evolving—and if you're thinking about buying or selling in the Philadelphia area, now’s the time to talk strategy.