Ed Neuhaus 
I had a seller call me a few months back, completely convinced she didn’t have to pay the buyer’s agent anymore. She’d read something about the NAR settlement, pieced it together from a few headlines, and decided she was going to save herself somewhere around $14,000 on the sale of her house.
I didn’t want to crush her, but I had to be straight with her. The new rules don’t work the way most people think they do. And the way she’d structured her listing based on that misunderstanding was going to cost her a lot more than $14,000 in days on market and price reductions.
So lets talk about what actually happened with the NAR commission changes in Texas, what it means for you as a seller, and what you actually need to be thinking about right now.
What Was the NAR Settlement, Really?
In March 2024, the National Association of Realtors settled a major antitrust lawsuit for $418 million. The lawsuit alleged that the traditional commission structure, where sellers automatically paid buyer agent fees through the MLS, amounted to price-fixing. The settlement went into effect on August 17, 2024.
The headline change was this: real estate agents can no longer advertise buyer agent compensation on the MLS. That one field, buried in the listing data that most sellers never saw anyway, was the thing everyone was fighting about.
That’s it. That’s the change.
Now, there are second-order changes that came along with it, including a requirement that buyers sign written representation agreements before touring homes. But for sellers trying to figure out what this means for their wallet, the MLS field removal is the core of it.
What Actually Changed for Texas Sellers
Before August 2024, here’s how it worked: when you listed your home, your listing agreement specified a total commission, usually in the 5-6% range. Buried in the MLS entry was a field that essentially said “I’m offering 2.5-3% to a buyer’s agent.” Every agent in the market could see it. It was automatic, baked into the listing, standard.
After August 2024, that field is gone from the MLS. You can no longer advertise what you’re willing to pay a buyer’s agent inside the MLS system.
But here’s where people get confused. “Cannot advertise on MLS” is not the same as “cannot pay.” Sellers can absolutely still offer to cover buyer agent compensation. The compensation just gets negotiated separately, outside the MLS, usually in the purchase contract itself or through a buyer concession.
Texas also added a new field in MLS listings where sellers can advertise “seller concessions” broadly — money you’re willing to contribute toward buyer expenses at closing, which could include their agent’s fee. Same outcome, different mechanism.
The result in practice? Almost nothing changed for sellers who are working with an experienced agent who understands the new structure. The money still flows the same direction in most deals.
The Number That Should Surprise You
When the NAR settlement was announced, a lot of people predicted commissions would crater. The theory made sense: if buyers have to negotiate their agent’s fee separately, there would be downward pressure. Agents would compete on price. The 6% “standard” would collapse.
What actually happened?
One year after the settlement took effect, buyer agent commissions went up. Not down. According to Redfin data, the average buyer agent commission nationally ticked from 2.38% to 2.43%. Total commissions also edged higher, from 5.32% to 5.44% on average.
Not the dramatic disruption people were predicting.
The reason is straightforward if you think about the market. We’re in a buyer’s market right now, with roughly 12,800 active listings in the Austin area and an average of 89 days on market, the longest we’ve seen since 2011. When buyers have leverage, sellers compete for their attention. And one way sellers compete is by making it easy for buyers’ agents to bring clients to their listing. The sellers who refused to offer buyer agent compensation? They sat. The ones who understood the dynamics? They sold.
Who Pays the Buyer’s Agent in Texas Right Now?
This is the question I get every single week, so lets be very direct about it.
Technically, under the new rules, buyers are responsible for paying their own agent. That’s what the written buyer representation agreement spells out.
In practice, in the current Austin market, sellers are still paying buyer agent compensation in the vast majority of deals. They’re doing it through seller concessions, through the purchase contract, through negotiation. The mechanism changed. The economics haven’t.
Here’s why this matters from the buyer’s perspective. The typical buyer in Austin is already stretched. Down payment, closing costs, inspection fees, moving expenses. Adding 2.5-3% in buyer agent fees on top of all that isn’t just painful, it’s often mathematically impossible, especially for first-time buyers. If you, as a seller, refuse to cover the buyer’s agent, you’ve effectively priced yourself out of a huge segment of the buyer pool.
That $14,000 my client was planning to keep? She would have given it up ten times over in price reductions and carrying costs if she’d listed the way she was planning.
The Three Biggest Misconceptions About the New Rules
Misconception 1: “I don’t have to pay the buyer’s agent anymore”
Technically true. Strategically, in most markets right now, this is a losing play. If you’re selling in a hot seller’s market with multiple offers, you have leverage and you might be able to get away with it. The Austin market in 2026 is not that. We have roughly 115% more sellers than buyers right now. You need every buyer you can get looking at your house.
Misconception 2: “Commissions dropped after the settlement”
They didn’t. If you’re doing your homework and comparing quotes from multiple agents, you can probably find commission rates at the lower end of the range. But the idea that the NAR settlement produced a widespread drop in what agents charge has not played out in the data. If anything, the opposite happened.
Misconception 3: “The rules eliminated the 3% buyer side standard”
The rules eliminated the MLS mandate that made it feel automatic. They didn’t eliminate the practice, and they didn’t change the economics that make offering buyer agent compensation a smart move. Agents still expect to be compensated. Buyers still expect their agent’s fee to be covered. The conversation just happens in a different place now.
How the Numbers Actually Break Down
Ok, lets look at a real example. You’re selling a $750,000 home in Bee Cave or Lakeway. Here’s what a typical deal looks like under the current structure:
- Listing agent commission: 2.5-3% = $18,750-$22,500
- Buyer agent compensation (seller concession): 2.5-3% = $18,750-$22,500
- Total commission range: $37,500-$45,000
At the top end, yes, that’s 6% of your sale price. That’s the range that’s been common in this market for years, and the settlement hasn’t moved it much in practice.
Some agents will quote lower. Some will quote higher. The question to ask isn’t just “what’s your rate” but “what does that rate include and how do you plan to sell my house.” I’ve seen sellers save 1% on commission and leave 3-4% on the table in negotiated price reductions because their agent didn’t have the market knowledge to price and position the listing correctly. Saving money on commission is great. Saving money on commission while your house sits for 120 days is not.
For a deeper look at what selling really costs, our article on the hidden costs of selling a home covers all of it, including staging, repairs, carrying costs, and closing fees beyond commission.
What the New Rules Changed for Buyers (That Sellers Should Understand)
The buyer representation agreement requirement is real and it matters. Before August 2024, buyers could walk into showings without any formal agreement with their agent. Now, agents must have a signed agreement with buyers before showing homes.
That agreement specifies what the buyer’s agent will be paid and who pays it. It’s a contract.
This is actually a good thing for sellers, because it means every buyer coming through your door has already had a conversation with their agent about compensation. There’s less ambiguity. The buyer knows what their agent costs. And the agent knows upfront whether the seller is covering it or not.
It also means that when you offer buyer agent compensation in your contract, you’re essentially honoring the agreement the buyer already has with their agent. Clean. Straightforward. No surprises at the closing table.
How to Think About Commission Strategy in 2026
There’s no one-size-fits-all answer here, because the right strategy depends on your specific situation. But here’s how I think through it with sellers.
If you’re in a competitive price range with strong demand
You might have more room to negotiate on buyer agent compensation. Homes priced under $500,000 in Austin are still moving relatively well. Multiple offers do happen. If you’re in that situation, a good agent will talk you through whether a lower buyer side offer makes sense.
If you’re in a price range where inventory is elevated
That’s most of the Austin market right now, especially anything over $600,000. You want buyers looking at your house, and that means making it attractive to their agents. Offering a competitive buyer agent compensation is part of that. It’s not charity, it’s marketing.
If you’re in the luxury segment
Westlake, Spanish Oaks, Barton Creek, Bee Cave luxury — things change a little. Buyers in that price range often have more flexibility on closing costs. But the agent dynamics are the same: top-producing buyer’s agents who work with high-net-worth clients have options. You want them walking clients through your door. Our West Austin luxury market analysis covers the dynamics in more depth.
What Neuhaus Realty Group Does Differently
The commission conversation is one I have with every single seller upfront. No ambiguity, no fine print, no “we’ll figure it out later.” Before we ever sign a listing agreement, you’ll know exactly what you’re paying, where every dollar goes, and why we’re recommending the strategy we’re recommending.
That’s not unusual, frankly. Any good agent does this. What I will say is that after 16 years working this market, I’ve seen what happens when sellers go into a listing based on misunderstandings about the new rules, and it costs them. Not in the way they were trying to save money, but in the opposite direction.
The sellers I work with at Neuhaus Realty Group understand from day one what selling actually costs, what strategies exist, and what tradeoffs we’re making. No surprises at closing. No “oh I didn’t realize that was a thing.”
For a full breakdown of what to expect when selling, take a look at our guide to selling your Austin home in 2026, or our deeper dive on Austin seller pricing strategy for the current market.
And if you want to know what mistakes cost sellers the most money in this market right now, the top 10 mistakes Austin home sellers make is worth reading before you list.
Frequently Asked Questions
Lets Talk About What Selling Actually Costs
If you’re thinking about selling and you want a straight answer about what you’ll pay, what strategies make sense for your situation, and what the current Austin market means for your timeline and price, that’s exactly the conversation I have with sellers every week.
No pressure, no pitch, just the actual numbers. Start here to connect with Ed Neuhaus and we’ll walk through it together.
