NAR Settlement Explained: What It Means for Home Buyers in 2026

In August 2024, the National Association of Realtors (NAR) agreed to a landmark settlement that fundamentally changed how real estate commissions work in the United States. If you're buying a home in 2026, this settlement directly affects your wallet — and most buyers still don't understand how.

Here's what changed, what it means for you, and how to use it to your advantage.

What the NAR Settlement Actually Changed

Before the settlement, real estate commissions worked like this: when a seller listed their home, they agreed to pay a total commission of 5-6% of the sale price. That commission was split between the listing agent and the buyer's agent. The buyer never wrote a check to their agent — the cost was hidden inside the sale price.

This created the illusion that buyer's agents were "free." They weren't. The cost was baked into every home price, and every buyer paid for it whether they used an agent or not.

The settlement changed two critical things:

1. Buyer agent compensation can no longer be listed on the MLS. Sellers no longer broadcast what they'll pay a buyer's agent. This breaks the automatic commission-sharing system that existed for decades.
2. Buyers must sign a written agreement before an agent shows them homes. This "buyer agency agreement" spells out exactly what the agent will be paid and who pays it. No more ambiguity.

Why This Matters for Your Wallet

The math is simple. On a $400,000 home:

• With a buyer's agent: The agent expects 2-3% compensation — that's $8,000 to $12,000. Either the seller pays it (and builds it into their asking price) or you pay it directly. Either way, the money comes from somewhere.
• Without a buyer's agent: That 2-3% doesn't need to exist. The seller has less to pay out, making your offer stronger. Or you negotiate that savings into a lower purchase price. You keep that $8,000-$12,000.

This is the single biggest change in residential real estate in decades. And it created an opportunity that didn't exist before: buying a home without an agent is now financially advantageous in a way it never was.

What Buyer's Agents Actually Do (And Don't Do)

To understand why you might not need one, it helps to understand what a buyer's agent actually provides:

• They can schedule showings. You can also schedule showings directly with the listing agent or the seller.
• They can suggest comparable properties. But they're not appraisers — they're making educated guesses, same as anyone with access to market data.
• They can help write offers. But they're not lawyers — in most states, the actual purchase contract is a standardized form.
• They negotiate "on your behalf." But they negotiate privately, and their incentive is to close the deal (their commission depends on it), not necessarily to get you the lowest price.

What they can't do: give you legal advice, perform an appraisal, inspect the property, or guarantee any outcome. Those things require licensed specialists — an attorney, an appraiser, an inspector — none of whom are your buyer's agent.

How to Buy a Home Without an Agent in 2026

Buying without a buyer's agent isn't "going without help." It's choosing better, cheaper help. Here's what the process looks like:

1. Get pre-approved for a mortgage. This is step one regardless of whether you have an agent. A lender will tell you what you can afford and give you a pre-approval letter that sellers take seriously.
2. Search for homes. Zillow, Realtor.com, Redfin — all the same tools agents use are available to you. You can also drive neighborhoods and contact listing agents directly.
3. Schedule showings. Call or email the listing agent. Say: "I'm an unrepresented buyer and I'd like to schedule a showing." Listing agents love this — it means less commission for the seller to pay out.
4. Run comparable analysis. Use public data, county records, and tools like BAIRE to understand what homes are actually selling for in your target area.
5. Write your offer. Use your state's standard purchase agreement. BAIRE walks you through every field and helps you craft a competitive offer based on market data.
6. Negotiate. Counter-offers go back and forth between you and the seller (or their agent). Having the comp data and a clear strategy matters more than having a middleman.
7. Get inspections. Hire a licensed home inspector. This is non-negotiable — and your agent was never going to do this for you anyway.
8. Close. Your title company or real estate attorney handles the closing process. They're the ones who actually make the transaction legal.

Where BAIRE Fits In

BAIRE is an AI-powered home buying consultant that gives you the knowledge and strategy agents provide — without the $10,000+ commission. For $995 one time, you get comp analysis, offer strategy, negotiation coaching, inspection guidance, and closing support from first search to closing day.

It's not "going without help." It's upgrading to better help at a fraction of the cost.

Try BAIRE free for 7 days →

Keep reading: Do You Actually Need a Buyer's Agent? → Step-by-Step Walkthrough → What It Actually Looks Like