How buyers and sellers are navigating NAR commission changes: Negotiation of fees has become much more common, but most sellers are still willing to cover the buyer agent commission, at least to some extent, Redfin said.

According to Redfin, the National Association of Realtors' (NAR) recent rule changes regarding commission have had varying impacts across the country. The new rules, which went into effect on August 17, prohibit listing agents from unilaterally offering compensation for the buyer agent's commission on NAR-affiliated multiple listing services. As a result, fee negotiations have increased in some areas, while others have not seen significant shifts. In slower markets, sellers are still willing to cover the buyer agent commission, while in cities with low inventory and high demand, fee negotiations are more common. The typical buyer's agent commission was 2.55% in July, slightly lower than before the settlement. The new rules also require listing agents to disclose their fees upfront, making them more transparent. Buyers are now more cautious about signing paperwork before touring a home. Some real estate brokers are even requiring buyers to sign a full buyer agency agreement before touring, committing them to work exclusively with that agent for a certain period of time. The biggest change so far has been negotiations between buyers and sellers over who pays the buyer's agent and how much. While negotiations are becoming more common, most sellers are still willing to help cover the buyer's agent fees. Removing the offer of compensation from the multiple listing service has led to more communication between agents when scheduling showings, with buyers' representatives contacting listing agents to inquire about compensation. Some listing brokers have found creative ways to communicate the seller's willingness to pay buyer's agents, [Extracted from the article]