Market PracticeDeal Strategy2025/2026
The New Normal After the NAR Settlement: How 2025/2026 Deals Really Work
Written buyer-broker agreements, off-MLS compensation, and more transparent fees are now part of everyday transactions. Here’s a practical playbook to structure confident offers and listings in 2025/2026—plus negotiation scripts, compliance tips, and live-data resources.
What Changed After the Settlement
Two practice shifts define the new normal:
- Written buyer-broker agreements before touring. Buyers sign a brief agreement setting the scope of services and compensation (flat fee, percentage, cap, or hybrid). This improves clarity and reduces surprises later.
- No buyer-broker compensation displayed in the MLS. If a seller wants to contribute to the buyer-agent’s fee, that offer is communicated off-MLS—for example, via email, offer instructions, or as a term in the purchase agreement.
These changes don’t eliminate representation or compensation. They simply change where and when compensation is discussed—pushing more of the conversation upfront with the client and into the four corners of the contract.
Why this increases clarity (for everyone)
- Buyers understand exactly what their agent does and how they get paid—and whether they’ll request a seller credit to cover it.
- Sellers can tailor their spend to demand: some will offer off-MLS comp or closing credits; others will prioritize rate buydowns or lean into certainty (inspection/appraisal clarity).
- Agents are using cleaner service menus and better discovery. The focus shifts to outcomes, not only commission displays.
What Didn’t Change
- Representation remains optional but common. Buyers and sellers can still hire advisors and negotiate terms that fit their goals.
- Compensation is negotiable. It can be paid by the buyer, the seller, or both—so long as the contract language makes it clear and compliant.
- Credits and buydowns still work. Sellers can use closing credits and rate buydowns to solve payment power, while keeping agent-fee handling in the agreement itself.
In short: deals still get done. They’re just more explicit.
Buyer-Broker Agreements: How to Make Them Work for You
Before stepping into a showing, buyers now sign an agreement that answers three questions: What services are you providing? How long will you provide them? How will you be paid?
Common structures
- Flat fee (e.g., $X due at closing)—predictable and easy to disclose.
- Percentage with a cap (e.g., 2.25% capped at $Y)—protects buyers above certain price points.
- Hybrid (small retainer + success fee)—aligns incentives and signals seriousness.
Pro tip: If the seller contributes a credit or agrees to pay your agent’s fee off-MLS, your agreement should spell out exactly how that offsets your obligation, including any refund of excess to you at closing if allowed.
For Buyer Agents
- Deliver a one-page menu of services (search strategy, comps, tour planning, contract, inspection, appraisal prep, closing).
- Spell out fee math with examples at two price points; show how seller credits interact.
- Include a termination provision and how disputes are resolved (mediation first).
For Buyers
- Decide whether you’ll ask for a seller credit to cover some/all of your agent fee.
- Confirm how lender & loan type treat credits, and how any excess is handled in closing instructions.
- Make sure your agreement says how third-party offers (like off-MLS comp) are applied.
Off-MLS Compensation: Practical Ways to Structure It
Since MLS displays no longer show buyer-agent comp, any seller contribution lives in the deal paperwork, not the listing remarks. Here are ways sellers are handling it in 2025/2026:
Option A — Offer off-MLS buyer-broker compensation
- Clean language: “Seller agrees to pay buyer-broker fee of ___% (or $___) if buyer is represented.”
- Use when you need broad agent engagement (thin buyer pool, unique property, rural locations).
- Pair with modest buyer credits or a rate buydown to widen the funnel without over-spending.
Option B — Don’t offer comp; offer a buyer credit instead
- Language: “Seller to credit up to $___ toward buyer’s allowable closing costs and/or rate buydown; allocation at buyer’s discretion.”
- Buyers can allocate part of that credit to their agent fee where permitted.
- Useful in price bands with strong demand where comps do the heavy lifting.
Option C — Price and certainty over cosmetics
- Take a decisive price stance and simplify terms (inspection caps, appraisal clarity, clean timelines).
- Great for shrinking days-on-market when affordability is tight.
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Financing Mechanics & Concessions (Without Losing Leverage)
Whether a seller covers a buyer-agent fee or the buyer requests a credit, the key is to align the structure with underwriting rules, loan type, and your negotiation goals.
Three levers that still move the needle
- Rate buydowns (temporary 2-1 or permanent): the biggest monthly-payment relief per dollar spent when rates are elevated.
- Targeted closing-cost credits: especially helpful for first-time buyers or in markets with higher escrow/prepaid costs.
- Certainty concessions: inspection cap, appraisal support, or flexible possession—these can be worth more to a buyer than an additional thousand dollars in list price changes.
Payment-Power Math (Simple Illustration)
Suppose a $500,000 purchase with 20% down. A permanent buydown of 0.25–0.375% may improve monthly cost more than a small list-price cut—and you can still layer a buyer credit to offset agent fees if that’s the gating factor. The “right” combo depends on the buyer’s cash to close, rate lock, and loan program.
Always coordinate with the buyer’s lender to maximize credit efficiency and avoid overages that can’t be applied.
Seller & Buyer Playbooks for 2025/2026
Seller Playbook
- Re-age comps (≤30 days) and confirm actives/pendings. Price to truth, not to hope.
- Pick a compensation path: off-MLS buyer-broker fee (Option A), a buyer credit (Option B), or certainty-first (Option C).
- Pair credits wisely: if payment power is the choke point, a rate buydown or targeted closing credit usually outperforms tiny list changes.
- Set expectations: state what you will (and won’t) cover—and how competing offers will be weighed (price, terms, risk).
- Have a Plan B: if volatility returns or DOM rises, request our firm cash offer and control your timeline.
Buyer Playbook
- Sign the buyer-broker agreement with clear fee math (flat, percentage, or capped) and examples.
- Budget the fee: decide whether to ask the seller for a credit to cover part/all of it.
- Structure the ask: if the listing shows no comp, present a clean price plus a targeted credit (and a buydown if helpful).
- Keep it simple: one or two asks, not five. Clarity wins multiple-offer scenarios.
- Be ready to move when spreads compress and demand wakes up (watch our live spread meter on the site).
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Scripts You Can Steal
Seller → Buyer Agents (off-MLS comp)
“Our seller will pay a buyer-broker fee of ___% (or $___) if your client is represented. We can also structure a $___ buyer credit for rate or closing costs. Fee arrangement will be reflected in the purchase contract (off-MLS). Please submit offers by ___ with proof of funds and lender letter.”
Buyer → Listing Agent (no comp on listing)
“We’re submitting at $___ with a $___ credit applied first to our rate buydown and then to buyer costs. Per our buyer-broker agreement (___% with cap $___), the credit will also cover our agent fee to the extent permitted. Clean timelines attached.”
Buyer Agent → Client (before tours)
“Before we tour, we’ll sign a brief agreement outlining services and our fee. If a seller contributes a credit or offers comp off-MLS, that offsets your obligation—if there’s any excess, we’ll follow the contract and closing instructions to credit you appropriately.”
State-Level Nuances (What to Expect)
Agency disclosures, consumer-protection language, and brokerage supervision rules vary by state. Some states prescribe required clauses and minimum content for buyer-broker agreements (services, term, termination, conflicts). Work from your state’s current forms and brokerage policy.
- Disclosures: Dual agency and designated agency rules differ. Make sure your agreements and offer paperwork match your state’s framework.
- Timing: Some states require the agreement before any substantive service; others tie it to touring access. When in doubt, err earlier.
- Advertising & steering: Compensation can’t be used to steer. Keep property search criteria objective and document your process.
Compliance Checklist (Copy & Customize)
For Listing Agents
- Confirm MLS display settings comply with the post-settlement rules (no comp display).
- If offering off-MLS comp, put it in writing outside the MLS and in the contract.
- Use clear offer instructions (deadlines, proof of funds, credit usage, buydown preferences).
- Coordinate credits with lender guidelines to avoid waste or re-disclosure delays.
For Buyer Agents
- Get the signed buyer-broker agreement before showings; spell out fee math with examples.
- Document how seller credits will be allocated (closing costs, buydown, fee coverage).
- Line-item any admin/transaction fees in your agreement—no surprises.
- Keep written records of off-MLS communications and contractual terms.
This article offers general market practices and is not legal advice. Always follow your broker’s policy and state regulations.
Datasets & Licensing
The following public datasets and references help you monitor conditions that interact with deal mechanics (affordability, demand, pricing power):
Mortgage & Treasury
- Freddie Mac PMMS (Primary Mortgage Market Survey) — Author: Freddie Mac. License/Use: Publicly available for informational use per Freddie Mac site. Overview · Archive
- FRED: MORTGAGE30US (30-year fixed average) — Source: Freddie Mac via FRED® (Federal Reserve Bank of St. Louis). License: FRED redistribution terms; underlying data from Freddie Mac. Series
- FRED: DGS10 (10-year Treasury constant maturity) — Source: Board of Governors of the Federal Reserve System (H.15). License: U.S. Government data (public domain). Series
Housing Activity
- NAR Existing-Home Sales — Author: National Association of Realtors®. License/Use: See NAR terms for publication and excerpting. Research
- Census/HUD Housing Starts & Permits — Author: U.S. Census Bureau & HUD. License: U.S. Government (public domain). New Residential Construction
- Case-Shiller Home Price Indices — Author: S&P Dow Jones Indices. License: Proprietary; fair use of excerpts per S&P DJI terms. Index page
Always check the current licensing/attribution language of each source before reproducing figures or charts on your own site. For most business blogs, linking to the series and citing the source is sufficient.
FAQ: Post-Settlement Deal Mechanics (2025/2026)
Do I have to pay my buyer’s agent out-of-pocket now?
No—compensation is negotiable. Some buyers ask for a seller credit to cover it; some sellers offer off-MLS comp; some buyers prefer to pay directly. The key is to put it in writing before tours and again in the contract.
Can sellers still pay buyer-agent fees?
Yes—just not via an MLS display. If the seller chooses to contribute, it’s communicated off-MLS (and reflected in the contract) alongside any closing credits or buydowns.
What should a buyer-broker agreement include?
Scope of services, term, fee formula (flat/percentage/cap), and how third-party contributions offset the fee. Clear examples at different price points help buyers budget.
What’s the biggest mistake to avoid?
Over-complicating offers. It’s better to present a single clean price with one or two targeted terms (credit and/or buydown) than five scattered requests. Simplicity signals readiness and reduces friction.
When should a seller request a cash offer?
When timing certainty is more valuable than chasing top-tick price—e.g., job relocation, estate, major repairs, or when rate volatility is hurting traffic. You can get a firm cash offer from us and choose your closing date.
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Why sellers choose us
- No repairs or showings—sell as-is
- Pick your closing date
- Transparent numbers (no junk fees)
- Nationwide coverage with local expertise
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