Ed Neuhaus 
The listing conversation has changed. Not just the forms. The whole landscape of how compensation works, how you explain it to sellers, and what happens when buyers show up.
If you’re still having the same listing presentation you had two years ago, you’re behind. The NAR settlement, SB 1968, and form updates all affect how you work with sellers.
A quick note: I’m not your broker (yet), and this isn’t legal advice. Always verify with your sponsoring broker and TREC directly before making changes to your practice. That said, if your broker isn’t walking you through this stuff, you might want to ask yourself why.
Lets talk about what’s changed in listing agreements and how to explain the new landscape to your sellers.
Key Form Changes for 2026
The Residential Listing Agreement got updates effective January 1, 2026. Two paragraphs in particular matter.
Paragraph 5: Broker Compensation
The compensation paragraph was revised to comply with TREC’s housekeeping law. The language around how compensation is disclosed and documented was cleaned up.
This matters because compensation conversations are more visible than ever. Sellers are asking more questions. The form language needs to be clear.
Paragraph 15: Cooperation With Other Brokers
This is where subagency language got removed. The old option to offer subagency to buyer’s agents is gone. The paragraph now focuses on how you’ll cooperate with buyer’s agents in the post-subagency world.
The New Compensation Landscape
Beyond form changes, the bigger shift is in how compensation works. The NAR settlement changed the game, and Texas law adapted.
No More MLS Offers of Buyer Agent Compensation
The old model: Listing agent puts the property on MLS, includes an offer of compensation to the buyer’s agent. That offer was visible to everyone. Buyer’s agents knew what they’d earn before showing the property.
That’s gone. As of August 2024 (NAR settlement), MLS systems can no longer display offers of buyer agent compensation. Sellers can still agree to pay buyer’s agents, but it’s not advertised the same way.
Compensation Is Now More Negotiable
With offers of compensation not displayed on MLS, each transaction involves a conversation about who pays the buyer’s agent and how much. Sometimes the seller pays. Sometimes the buyer pays. Sometimes it’s a combination.
This means listing agents need to prepare sellers for these conversations. And buyers are having harder conversations with their agents about compensation under buyer representation agreements.
How to Explain This to Sellers
Here’s how I frame the compensation conversation with sellers.
Start With the Goal
“Your goal is to sell this property for the best price in a reasonable timeframe. To do that, we want as many qualified buyers as possible looking at it. Most buyers work with agents. So we need to think about how buyer’s agents will be compensated.”
Explain the Options
“Here are your options. You can offer to pay the buyer’s agent commission, which makes your property more attractive to buyers who don’t want to pay their agent directly. Or you can not offer compensation, which means buyers will need to pay their own agent. That might reduce your buyer pool, or buyers might ask you to contribute to their agent’s fee as part of negotiations anyway.”
Give a Recommendation
“My recommendation for your property in this market is…” Then give specific advice based on their situation, the competition, and market conditions.
Document the Decision
Whatever the seller decides, document it clearly in the listing agreement. If they’re offering buyer agent compensation, specify the amount. If they’re not, document that too.
Protecting Your Listing
In this new environment, how do you keep your listings competitive?
Communicate Compensation Clearly
Even though MLS doesn’t display compensation offers, you can communicate them through other channels. Broker-to-broker communication. Property websites. Agent remarks that indicate compensation is available.
Check your MLS rules about what can and can’t be communicated, but find ways to let buyer’s agents know the property will compensate them.
Be Ready to Negotiate
If buyers come in and want the seller to pay their agent’s commission, be prepared to negotiate. This is a term like any other. Help your seller evaluate whether accepting the request makes sense for the overall deal.
Explain to Unrepresented Buyers
Unrepresented buyers may show up expecting things to work like they used to. Be prepared to explain the IABS disclosure, the representation options, and how compensation works.
Working With Buyer’s Agents
Your relationship with buyer’s agents matters more than ever. Here’s how to navigate it.
Be Clear About Compensation
When a buyer’s agent calls about your listing, be upfront about compensation. “The seller is offering X% to buyer’s agents” or “The seller is not offering buyer agent compensation, so you’ll need to address that with your buyer.”
Clear communication prevents problems later.
Understand Their Situation
Buyer’s agents have signed agreements specifying their compensation. They may have guaranteed minimum fees. Understanding their position helps you anticipate how negotiations might go.
Facilitate Good Deals
The goal is still to close transactions that work for everyone. Creative solutions around compensation can get deals done. Be a problem-solver, not an obstacle.
What About Intermediary Situations?
When a buyer comes directly to you on your listing without representation, you have options. Intermediary status (representing both parties with limitations) is still available if your brokerage allows it and both parties consent.
Or you can refer the buyer to another agent for representation and keep your listing relationship clean.
Since subagency is gone, you can’t default to representing the seller while working with the buyer. Make a clear choice.
Ed’s Take
The compensation landscape change has been harder on some agents than others. Agents who always communicated clearly about value and earned their fee are doing fine. Agents who relied on the old system working automatically are struggling more.
For listing agents, this is actually an opportunity. Sellers are paying more attention to what they’re getting for their commission. If you can articulate your value clearly, show your marketing plan, demonstrate your negotiation skills, you stand out from agents who just list properties and hope.
At Neuhaus Realty Group, our listing presentations got updated when these changes came. We walk sellers through the new landscape. We give them data to make informed decisions about buyer agent compensation. We’re transparent about our own fees and what we deliver.
That’s the standard now. Sellers are more informed. Rise to meet them.
Questions?
The listing side of the business has changed significantly. If your broker hasn’t updated your listing presentation to address the new compensation landscape, that’s a gap.
Have questions about how to position listings or explain compensation to sellers? Reach out to me. I’m happy to share what’s working for our team, even if you’re not one of my agents. Yet.
