By now you've probably heard something about the NAR settlement — maybe a headline, maybe a neighbor's comment, maybe something your lender mentioned when you were pre-qualifying. The coverage has ranged from accurate to wildly overblown, and I want to give you the straight version: what actually changed on August 17, 2024, how Virginia's market has responded, and what it means for you if you're buying or selling in 2026.
The short version: commissions are negotiable now in a more formalized way than before, buyers must sign written agreements before touring homes, and sellers have more explicit control over what they pay buyer's brokers. The longer version is below.
What the NAR Settlement Is and How We Got Here
The National Association of REALTORS® reached a settlement agreement in March 2024 that took effect on August 17, 2024. The lawsuit behind it — Sitzer/Burnett v. National Association of REALTORS® — centered on a claim that the traditional commission structure artificially inflated compensation for buyer's agents because sellers were effectively required to offer a set commission to a buyer's broker in order to list on MLS-affiliated databases. Plaintiffs argued this removed market competition from buyer's agent compensation.
The settlement resolved the lawsuit for approximately $418 million and required two structural changes to how real estate transactions work across NAR-affiliated MLSs nationwide.
The 5 Key Changes That Took Effect August 17, 2024
1. No Commission Offers on the MLS
Before August 17, 2024, sellers routinely listed a buyer's broker commission directly on the MLS — typically 2.5% to 3% — visible to all agents. That is now prohibited. Buyer's broker compensation cannot be offered, advertised, or communicated via the MLS itself.
What sellers can still do: advertise buyer's agent compensation on their own websites, in print flyers, on yard signs, on social media, and through direct communication with buyer's agents outside the MLS. The restriction is specifically on MLS fields and displays.
2. Written Buyer Agreements Are Now Required Before Touring
This is the change that has gotten the most attention among buyers. Before a REALTOR® can show you a home, you must now sign a written Buyer Representation Agreement that clearly specifies:
- The services the buyer's agent will provide
- The compensation the buyer's agent is seeking — stated as a specific dollar amount or percentage, not a range
- That compensation is negotiable and not set by law
- The duration of the agreement
For Virginia buyers, this is worth understanding: Virginia REALTORS® has encouraged written buyer representation agreements for nearly 30 years. Our state's real estate statute (§ 54.1-2138.1) has long recognized and governed buyer representation. The August 2024 national mandate formalized something Virginia was already doing better than most states. If you worked with a Virginia REALTOR® in 2020 or 2021, you likely signed something similar already.
3. Commissions Are Explicitly Negotiable
This was always true, but the settlement requires explicit language in buyer agreements reinforcing it. Buyer's agent compensation is negotiable — it can be structured as:
- A percentage of the sale price (e.g., 2.5%)
- A flat fee (e.g., $8,000)
- An hourly rate for specific services
- A combination of any of the above
The key point for buyers: you agree to a specific amount in writing when you sign the buyer agreement. You are not locked into paying your agent out of pocket if the seller offers concessions — but you need to understand how the compensation will be sourced before you make offers.
4. Virginia-Specific Context: This Wasn't a Shock to Our Market
Because Virginia REALTORS® had already built written buyer agreements into standard practice, the August 2024 changes did not require the same procedural overhaul that agents in other states faced. Our local MLSs — including the Lynchburg Association of REALTORS® — updated their compliance requirements, but the underlying relationship between buyers and their agents in Central Virginia didn't change dramatically.
What did change is the conversation around compensation. That conversation is now explicitly had upfront, in writing, before the first showing. That is a good thing for consumers.
5. VA Loan Changes for Veterans
This deserves its own section because it affected our military and veteran buyer population directly. Before the settlement, VA loan guidelines prohibited veterans from paying buyer's agent commissions directly — the commission had to come from the seller's side. That created a structural disadvantage for VA buyers in a post-settlement world where sellers were no longer advertising commissions on MLS.
The Department of Veterans Affairs addressed this in August 2024 by updating its guidelines to allow VA buyers to pay their buyer's agent commissions directly, provided the fee is reasonable and customary. This change removed the disadvantage and kept VA-financed buyers competitive in the market. If you're a veteran using VA financing, your buyer's agent can discuss how this applies to your specific transaction.
What This Means for Buyers in Virginia
| Situation | Before August 2024 | After August 2024 |
|---|---|---|
| Touring homes with an agent | No written agreement required upfront | Written buyer agreement required before first showing |
| Agent compensation | Offered by seller on MLS, often assumed | Negotiated and documented in buyer agreement |
| Seller paying buyer's agent | Common, listed on MLS | Still possible via concessions, not listed on MLS |
| VA loan buyers | Could not pay buyer's agent directly | Can pay buyer's agent directly (reasonable/customary) |
| Commission transparency | Visible on MLS but rarely discussed directly | Explicitly stated in writing before any touring |
For buyers, the practical advice is this: come to your first conversation with a buyer's agent already having done some research on what you want, what neighborhoods interest you, and what your budget is. Sign the buyer agreement with confidence — it protects you as much as it protects your agent, because it clearly defines what you're getting and what you're paying for it.
You can ask sellers to cover buyer's agent compensation through a seller concession, written into your offer. Many sellers are still doing this because it keeps the buyer pool as large as possible. In a market where 20% of buyers might walk away if they had to pay agent fees out of pocket, offering to cover compensation is a straightforward way for sellers to protect their sale.
What This Means for Sellers in Virginia
Sellers have more explicit control now, and that cuts both ways.
What's different for sellers:
- Your listing agreement must now clearly show any buyer broker compensation you're offering
- You must formally approve any payment to a buyer's broker — it cannot be assumed
- You cannot list buyer's agent compensation on the MLS, but you can advertise it anywhere else
- You are not required to offer any buyer's agent compensation — that's your decision
What hasn't changed for sellers:
- You can still offer to pay the buyer's agent
- Agents can still be compensated through seller concessions or direct seller payment
- Your listing agent's commission is a separate negotiation from buyer's agent compensation
- A well-represented buyer is still the strongest buyer
My honest take as a listing agent with 21 years of experience: sellers who refuse to offer any buyer's agent compensation will generally attract fewer offers, not more. The buyer pool that can afford to pay their own agent out of pocket is smaller than the full buyer pool. Most buyers, especially first-time buyers and VA buyers, are going to work with agents they've signed agreements with. If your listing has nothing for those agents, you'll see fewer showings.
The sellers who are navigating this best are the ones who work with their listing agent to determine a reasonable buyer's agent compensation offer, advertise it clearly outside the MLS, and let buyer's agents know through direct communication what the offer is. That keeps showings high and the buyer pool wide.
What Hasn't Changed at All
Amid all the noise, here's what remains exactly the same:
- Commissions were always negotiable. The settlement reinforced this but didn't create it. They've been negotiable since the first real estate transaction.
- Agents can still be paid. The settlement doesn't cap, eliminate, or prohibit agent compensation. It changes how it's structured and communicated, not whether it exists.
- Sellers can still offer buyer's agent compensation. The prohibition is on MLS advertising, not on the practice itself.
- Strong representation still matters. If anything, the settlement has made the value of a skilled buyer's agent more visible, not less. Buyers who sign agreements with knowledgeable agents and understand the full picture of what they're paying for are in a better position than buyers who try to navigate a purchase without representation.
Teresa's Take
We embraced written buyer agreements long before they were mandated. In my practice, I've always believed that a buyer who understands exactly what I'm doing for them and what my compensation is will be a better, more confident buyer. Ambiguity doesn't help anyone. This change protects consumers and clarifies expectations — it's a good thing, even if the rollout was noisy.
What I tell buyers who sit down with me now: come ready to have a real conversation about the process, your goals, and what you want out of representation. Sign the agreement with full understanding of what it covers. And know that in most transactions in Central Virginia, seller concessions still cover buyer's agent compensation — you're unlikely to be writing a check to your agent out of pocket at closing.
What I tell sellers: talk to your listing agent about a compensation strategy that keeps your buyer pool as large as possible. In our market — where entry-level buyers in Lynchburg and Bedford County are often stretched on down payment and closing costs — a seller who covers buyer's agent compensation is a seller who gets more offers.
If you have questions about how the settlement affects your specific situation — whether you're buying your first home in Forest, upgrading to a waterfront at SML, or listing a property in Amherst County — call us. These questions are best answered in a conversation, not a web search.
Teresa Grant is the Owner, Luxury Listing Specialist, and Certified Negotiation Expert at The Realty Group Team, Keller Williams. She has helped Central Virginia families buy and sell homes since 2005. Reach her at therealtygrouponline.com.