What Real Estate Commissions Look Like After the NAR Settlement

A federal antitrust settlement changed how real estate commissions work across the country. Two years on, here is what the shift actually means for Miami condo buyers and sellers.

Published October 16, 2026

The Short Version of the Settlement

In March 2024, the National Association of Realtors reached a $418 million settlement with home-seller plaintiffs who argued that commission rules artificially inflated what sellers paid. Two rule changes took effect on August 17, 2024, and they apply to every MLS-listed property in the country, including Miami-Dade condos and single-family homes.

No more MLS commission offers to buyer-agents

Before August 2024, a seller could post an offer of buyer-agent compensation directly on the MLS listing. That is now prohibited. Sellers can still pay a buyer's agent, but the offer cannot appear in the MLS database.

Written buyer representation agreements required before touring

Buyers must now sign a written agreement with their agent before touring a property. The agreement spells out how the agent will be compensated and for how much. Florida already required clear disclosures in buyer-agent agreements under state brokerage relationship law, so the practical shift here was less abrupt than in many other states.

Who Actually Pays the Buyer's Agent in 2026

Despite early predictions that buyers would routinely pay their agents out-of-pocket, the Miami market—like most U.S. markets—has largely settled into a different pattern. Sellers frequently still offer buyer-agent compensation, because doing so attracts a larger buyer pool and more competitive offers. They simply communicate that offer outside the MLS: in listing marketing materials, through direct agent-to-agent outreach, or in the purchase contract itself.

Market data published in mid-2025 showed that buyer-agent commissions nationally had ticked back up toward pre-settlement averages within roughly a year of the rule change taking effect. The negotiating table shifted; the average dollar amount at closing largely did not.

New construction is a partial exception with its own logic. Miami developers commonly advertise commissions of three to four percent—and sometimes higher—specifically to motivate buyer-agents to bring clients to their projects. This practice predates the settlement and continues after it.

What the Written Representation Agreement Covers

Before you tour any property with an agent, you must both sign a written buyer representation agreement. Read it carefully before you sign. It should clearly state:

• The compensation amount or percentage your agent expects
• Whether that compensation is a flat fee, an hourly rate, or a percentage of the purchase price
• The duration of the agreement and the geographic scope
• Whether the agreement is exclusive or non-exclusive

If a seller offers buyer-agent compensation at closing that equals or exceeds what is stated in your agreement, the seller's payment covers it. If the seller offers less, your agreement with your agent determines whether you make up the difference, whether the agent accepts the lower amount, or whether you renegotiate before making an offer.

Practical Scenarios for Miami Condo Buyers

Buying a resale condo in Brickell, Edgewater, or Midtown

Many sellers in these submarkets continue to offer buyer-agent compensation of two to three percent. Your agent will confirm what a particular seller is offering before you tour. You will sign a buyer representation agreement first; if the seller's offer matches or exceeds your agreement's stated compensation, nothing comes out of your pocket for agent fees at closing.

Buying directly from a developer in a new building

Developer sales teams represent the developer, not you. Bringing a buyer's agent—and signing a representation agreement before your first developer site visit—protects your interests and typically costs you nothing extra, because developers budget buyer-agent commissions into their sales and marketing costs.

Buying a For Sale by Owner listing

FSBO sellers have no obligation to pay your agent. Your representation agreement governs what, if anything, you owe your agent if you purchase a property that offers no buyer-agent compensation. Clarify this scenario with your agent before you make an offer on any FSBO listing.

What Sellers Need to Know

You still control whether to offer buyer-agent compensation and for how much. Most Miami listing agents recommend making an offer because it expands your buyer pool. The offer is simply communicated differently now—through marketing materials and direct negotiation rather than through an MLS field.

In a competitive environment where buyers have options—especially when a unit carries a high HOA fee, a pending milestone inspection, or an upcoming special assessment—offering buyer-agent compensation can meaningfully increase the property's visibility among active buyer-agents.

Frequently Asked Questions

Can I refuse to sign a buyer representation agreement?

You can decline, but agents are not required to work with you without one. A reputable agent will want the relationship in writing regardless of the new rules. If you are not ready to commit to an agent, consider attending open houses unaccompanied to learn the market first, since those do not require a representation agreement.

Does the settlement apply to rental transactions?

No. The NAR settlement covers purchase transactions. Rental placement fees are governed by separate agreements between landlords, tenants, and leasing agents—and are generally negotiated differently in the South Florida market.

Has the total cost of buying a home changed?

For most buyers in markets like Miami, the short answer is: not dramatically. Sellers have continued to offer buyer-agent compensation at broadly comparable levels because it serves their interests. The negotiating framework changed; the typical closing cost structure for buyers has not shifted in a way that is visible to most participants at the transaction level.

Should I still work with a buyer's agent?

Navigating Miami's condo market—with its varied HOA financial health, Milestone Inspection program timelines, reserve study requirements under Chapter 718, and building-specific rental restriction rules—involves substantial due diligence that a knowledgeable buyer's agent can help structure. The compensation conversation is separate from the question of whether professional representation is worth having.

What if a seller's offer is lower than what I agreed to pay my agent?

This is negotiable. You can ask the seller to gross up the offer as part of your purchase offer, accept the shortfall yourself, or renegotiate with your agent. How this plays out depends on how competitive the offer environment is and what your agent's agreement allows.

Stefania Riverin, Licensed Real Estate Sales Associate, FL SL3620067, brokered by NB Elite Realty. This post describes general rule changes effective August 17, 2024, and does not constitute legal or financial advice. Compensation terms in any specific transaction are negotiated between the parties and their agents.