Consumer Guide to Navigating New NAR regulations in 2025

Many consumers have heard something in the media over the last year regarding new regulations / commission changes in the real estate industry.

Many brokers and agents have experienced confusion over how to handle the new rules when talking with new clients, and struggle to educate both buyers and sellers on the changes. Headlines such as: “Buyer’s agents are going to disappear!” are amongst many shaking up the industry and creating this confusion. We hope that this serves as a simple remedy to cut through the noise.

There are pros and cons to these changes, and navigating them can be very simple. We also believe that these changes can be positive for all market participants. So let's review the changes, and see how Ratliff... works with them in mind. 

1. The National Association of Realtors (NAR) now requires Realtors to have buyer’s representation agreements, or single showing agreements, in place prior to showing a home (Listing agents do not need a showing agreement for their listings).

2. Commission fees must be disclosed to buyers and sellers within the agreements.

3. Commission offerings are no longer disclosed up front agent to agent on the MLS.

4. Agent fees can now be included as a part of the seller concessions as a part of buyer closing costs. 

Representation Agreement Changes

Let's start with the representation agreements and how our team is currently handling this. We have a 3-tier structure for all new buyers that we onboard so that we avoid making our clients feel pressured. Our focus is to create an empowering environment for our clients to succeed, not trap them into a contract.

TIER 1: Showing agreement - In this agreement, buyers strictly enter into an agreement based on access to 1 home and are not bound to work with an agent afterwards. They are only bound to the agreement should they decide to write an offer on the specific home stated within this agreement. 

TIER 2: Non-Exclusive Representation - We have a non-exclusive agreement for new buyers who are pre-approved, unsure if they are ready to commit to 1 agent, but ready to see more than 1 home. Our Non-Exclusive Agreements cover buyers for 30 days and up to 7 showings of their choosing. Should they find a home within this time period, great, the agent will be glad to guide them through the process of buying, should they not find a home within 30 days and decide they and the agent do not work well together, no harm no foul. The buyer is immediately released from the agreement and welcome to go work with whomever they like. 

TIER 3: Exclusive Representation - This is for committed buyers who are ready to buy and looking for an agent to work for them and not just to open doors to homes. We provide access to off-market properties that the other two tiers will not have access to. The designated agent has an ability to negotiate on their behalf, will not limit the number of showings, and provide additional market insights, data, consultations, and work closely with the buyer's lender to ensure they are getting the best terms within their contract as well as with their financing. 

Commission Changes

As a buyer's agent, we are able to negotiate a commission for our services based off the purchase price, typically this is somewhere in the 2%-4% range, but can vary depending on negotiations. We have yet to come across a seller in this market who is not willing to offer buyer agent compensation to some degree. So, the idea that buyer's are now automatically on the hook to pay buyer agent commissions has not held true in our experience.

When we have strong, pre-approved buyers with the ability to close efficiently with excellent agents, sellers are still willing to compensate that buyer broker accordingly.

We believe it is a positive thing that commissions are no longer disclosed on the MLS, because it leaves this portion of the transaction open to conversation between agents and clients. This also seems to have brought about more professionalism between agents, which leads to more products discussion and negotiation.

If you have questions about these changes or anything else within the industry, we’d love to help guide you through any you may have. 

Ian H. Ratliff 

Broker/Owner of RATLIFF…