The 2024 NAR Commission Settlement: What San Diego Sellers & Buyers Need to Know

In August 2024, a landmark National Association of REALTORS® (NAR) settlement changed the way real estate commissions are handled across the country — including here in San Diego. If you are buying or selling, understanding these changes can save you thousands of dollars.

What Actually Changed

Two big things. First, sellers are no longer required to offer a buyer’s agent commission through the MLS. Second, buyers must now sign a written representation agreement with their agent before touring homes. In short: buyer-agent compensation became explicit and negotiable rather than baked in automatically.

What It Means for Sellers

You now have more control over your total commission costs. You can choose whether — and how much — to offer a buyer’s agent as a concession to attract more buyers. The right strategy depends on your price point, neighborhood, and timeline.

• You are no longer obligated to a fixed buyer-agent commission
• You can offer a concession strategically to widen your buyer pool
• Combined with a 1% listing fee, total savings can reach $12,000–$45,000+ vs pre-settlement norms
• A strong agent models each scenario before you list so you maximize net proceeds

What It Means for Buyers

Buyers now negotiate compensation directly with their own agent and sign an agreement up front. That sounds daunting, but it brings transparency — you know exactly what representation costs. With Justin, the maximum a buyer pays is 1%, and where a seller agrees to cover it in the offer, you may pay nothing at all.

Common buyer questions

• Who pays the buyer’s agent now? Buyers are responsible, but sellers can still contribute via the offer.
• Do I have to sign a contract? Yes — nationwide. Terms (exclusive vs non-exclusive) are negotiable.
• Can I cancel? With Justin, yes — short terms and an easy-out policy.

How to Use the New Rules to Your Advantage

The settlement rewards homeowners and buyers who work with agents that are transparent about fees and skilled at structuring compensation. On the selling side, a 1% listing fee plus a smart buyer-concession strategy is the clearest path to keeping more equity. On the buying side, a capped 1% fee protects you from surprises.

Have questions about how the changes affect your specific situation? Justin walks every San Diego client through the new landscape — before you commit to anything.