Did the NAR Settlement Really Stop Florida Sellers From Paying the Buyer's Agent?

One of the biggest misconceptions I hear from Florida homeowners is this:

"The NAR settlement means sellers do not have to pay the buyer's agent anymore."

That statement contains a small piece of truth, but it leaves out the part that matters most when you are actually trying to sell a home.

Sellers were never legally required to pay a buyer's agent a predetermined commission. Real estate compensation has always been negotiable. What changed after the National Association of REALTORS® settlement was primarily the process, the required disclosures and where offers of compensation may be communicated.

What did not disappear was the practical reality of selling a home in a market where buyers have choices and many cannot afford to pay their agent's fee out of pocket.

After more than 32 years in residential real estate, I have worked through strong seller's markets, difficult buyer's markets, recessions, housing booms, inventory shortages and periods when sellers had to fight for every showing.

One lesson has remained true through every market cycle:

The market determines your leverage -- not the headlines.

A seller may have the legal right to decline buyer-agent compensation. That does not automatically mean doing so will create the best financial outcome.

Here are seven things Florida sellers need to understand before making that decision.

1. Buyers Cannot Usually Treat Their Agent's Fee Like an Ordinary Mortgage Expense

Many buyers are already managing several substantial costs:

• A down payment
• Loan closing costs
• Inspections
• Appraisal expenses
• Homeowners insurance
• Flood insurance
• Prepaid taxes and insurance
• Moving expenses
• Immediate repairs or improvements

If the seller does not agree to pay or contribute toward the buyer's agent compensation, the buyer may have to bring that money to closing in addition to the other funds required.

In most conventional transactions, the buyer cannot simply add an unlimited agent fee to the mortgage balance. The property must still appraise, the buyer must qualify and the financing must comply with the lender's rules.

That creates a practical affordability issue.

A buyer may love your home and be fully qualified for the mortgage but still lack the additional cash necessary to pay the agent directly. Another buyer may have the cash but decide that a competing property offers a better overall financial package.

This is why refusing to consider buyer-agent compensation can reduce a seller's effective buyer pool.

It does not necessarily mean no one will buy the property. It means some buyers may be unable -- or unwilling -- to structure an offer that works.

2. Sarasota and the Gulf Coast Are Not One Uniform Market

Real estate is hyperlocal.

There is no single "Florida market," and there is not even one universal Sarasota market. A waterfront condominium, a new-construction home in Parrish, a luxury residence on Siesta Key and an entry-level home in Bradenton can experience completely different levels of demand.

Across many Gulf Coast segments, buyers have had more inventory, more time and more negotiating power than they did during the extreme seller's market of 2021 and 2022.

In Sarasota County, June 2026 data showed sellers receiving a median of 94.4% of the original list price for single-family homes. Condo and townhome sellers received a median of 92% of the original list price. Those numbers demonstrate why pricing and negotiation strategy continue to matter.

When buyers have choices, they compare the entire transaction:

• Price
• Property condition
• Insurance costs
• Association fees
• Assessments
• Closing-cost assistance
• Interest-rate incentives
• Repairs
• Buyer-agent compensation

A seller cannot evaluate compensation in isolation. It must be considered alongside all the other factors influencing demand for that particular home.

3. The Strategy May Change in a Strong Seller's Market

There may be a time when refusing to offer or consider buyer-agent compensation becomes easier for sellers.

When inventory is extremely low and several buyers are competing for the same home, buyers may be more willing to pay their own representation costs, renegotiate their agreement or find another way to structure the transaction.

That is what leverage looks like.

However, sellers can get into trouble when they use a seller's-market strategy in a balanced or buyer-leaning market.

I have seen homeowners make decisions based on what their neighbor received several years earlier, what an online article promised or what happened during the pandemic housing surge. Then they wonder why their home is sitting while competing properties are selling.

Your strategy should reflect the market that exists when you list -- not the market that existed two or three years ago.

4. Sellers Were Never Legally Required to Pay a Particular Commission

This point is important because many consumers were led to believe the settlement suddenly made commissions negotiable.

Real estate commissions were already negotiable.

There is no federal or Florida law requiring a seller to pay a fixed percentage or a predetermined buyer-agent commission. Florida Realtors continues to emphasize that compensation is negotiable and can be structured in several different ways.

The seller and listing broker negotiate the listing-side compensation. The buyer and buyer's broker negotiate the terms of their representation and compensation. The parties may then negotiate whether some or all of the buyer's obligation will be paid by the seller or another source.

The settlement increased transparency and changed industry practices, but it did not create a law that commissions must -- or must not -- be paid by a particular party.

5. The Most Visible Change Happened Inside the MLS

Before August 17, 2024, an MLS listing could display an offer of compensation to a buyer's broker.

Under the new practice rules, offers of buyer-broker compensation may no longer be placed anywhere in the MLS -- not in a compensation field, public remarks, private remarks or another MLS section.

This is the change many consumers misunderstand.

The settlement did not prohibit sellers from compensating a buyer's broker. It prohibited those offers from being communicated through the MLS.

Compensation may still be discussed and negotiated outside the MLS, or it may be requested within the buyer's offer.

Florida Realtors even created a specific form through which a seller may agree to compensate the buyer's broker for procuring a buyer.

In other words:

Seller-paid buyer-agent compensation did not become illegal. It simply stopped being advertised through the MLS.

6. Buyer-Agent Compensation Did Not Collapse

Some headlines suggested buyer-agent commissions would fall dramatically once the settlement changes took effect.

That has not broadly happened.

Redfin reported that buyer's agents earned an average commission of approximately 2.4% during the first quarter of 2025. That was slightly higher than immediately after the August 2024 rule changes, although slightly lower than the prior year.

Later data showed compensation increasing in certain price ranges. For homes selling below $500,000, the reported average buyer-agent commission rose from 2.45% to 2.52% year over year by the second quarter of 2025.

The numbers may vary by location, property type, price range, brokerage and transaction. However, the evidence does not support the idea that buyer-agent compensation simply vanished.

Why has it remained relatively stable?

One major reason is affordability. Many buyers need seller participation in order to preserve their cash for the down payment, closing costs, insurance and other expenses.

Another reason is market balance. When sellers are competing for buyers, they are more likely to consider terms that make their home financially attractive.

7. Buyers Generally Sign a Written Compensation Agreement Before Touring

Another important change is the requirement for written buyer agreements.

MLS participants working with buyers generally must enter into a written agreement before touring a home. That agreement should explain the services being provided and how the buyer's broker will be compensated.

Suppose a buyer agrees that their broker will receive a particular fee. If the seller or listing side pays less than that amount, the agreement may make the buyer responsible for the difference.

That changes how buyers evaluate homes.

A property may appear affordable based on its purchase price, but if the buyer must bring several thousand additional dollars to pay for representation, it may no longer fit the buyer's available cash or financial plan.

This does not mean every seller must automatically agree to every compensation request.

It means the seller and listing agent should understand the potential consequences before responding.

The Real Question Is Not "Who Pays?"

The better question is:

Which structure produces the strongest net result for the seller?

Imagine two possible scenarios.

In the first, a seller refuses to consider buyer-agent compensation. The property receives fewer showings, remains on the market for several months and eventually requires a $25,000 price reduction.

In the second, the seller agrees to a negotiated compensation amount that makes the home accessible to more qualified buyers. The home sells sooner, with fewer carrying costs and at a stronger price.

Which seller saved more money?

The answer cannot be determined by looking at commission alone.

A professional listing strategy must also consider:

• The final sales price
• Mortgage and carrying costs
• Taxes
• Insurance
• Association dues
• Utilities
• Maintenance
• Price reductions
• Repair concessions
• Closing-cost assistance
• Time on market
• The seller's timing and objectives

This is why I focus on the seller's net result rather than promoting a simplistic promise about fees.

Compensation Is a Negotiating Tool, Not an Automatic Expense

Buyer-agent compensation should be discussed thoughtfully.

Depending on the property and market, a seller might:

• Offer a specific amount outside the MLS
• Wait to see what a buyer requests in an offer
• Agree to pay all or part of the buyer's obligation
• Set a maximum contribution
• Negotiate compensation alongside price and other terms
• Decline the request when the property has sufficient demand

There is no single answer that is right for every Florida seller.

A highly desirable, properly priced home receiving multiple offers may require a different approach from a condominium competing against dozens of similar units.

A cash buyer may have different needs from a buyer using FHA, VA or conventional financing.

A luxury property has a different buyer profile from a first-time-buyer home.

The strategy should fit the transaction.

What I Tell My Sellers

I do not tell my sellers they must automatically pay a buyer's agent.

I also do not promise that refusing to pay will automatically save them money.

Instead, I explain:

• What the current local market is doing
• How much competing inventory exists
• Which buyers are most likely to purchase the home
• How compensation could affect affordability
• How offers may be structured
• What each option could mean for the seller's net proceeds
• Where the seller has leverage
• Where flexibility may create a better result

Then the seller makes an informed decision.

That is what true representation should look like.

The Bottom Line for Florida Sellers

The NAR settlement gave consumers greater transparency and changed how real estate compensation is discussed and communicated.

It did not guarantee that Florida sellers would stop paying buyer-agent compensation.

In many Sarasota and Gulf Coast transactions, sellers continue to pay or contribute because it helps make the property accessible to a larger group of buyers and can support the seller's overall negotiating strategy.

As the market changes, that strategy may change too.

The settlement gave sellers another tool.

The market determines when and how that tool should be used.

Before listing your home, do not rely solely on headlines, social media claims or a one-size-fits-all commission pitch.

Ask your agent to explain:

1. Who is most likely to buy your home?
2. How much competing inventory is available?
3. How could buyer-agent compensation affect your buyer pool?
4. How will compensation requests be handled?
5. What strategy is most likely to produce the strongest net proceeds?
6. What are the risks of refusing compensation?
7. What choices remain negotiable throughout the transaction?

The goal is not merely to pay the lowest fee.

The goal is to make intelligent, strategic decisions that protect your equity and help you move forward with the best possible outcome.

Thinking About Selling on Florida's Gulf Coast?

If you are considering selling in Sarasota, Manatee, Charlotte or the surrounding Gulf Coast communities, I would be happy to give you a straightforward analysis of your property, your competition and your options.

No hype. No confusing headlines. Just the facts, the current market and a strategy designed around your goals. For a step-by-step overview of the process, visit my complete selling guide.