• MLS listings can no longer show buyer agent pay. This changes how buyers and sellers work out fees.
• Industry collapse fears did not come true. Buyers are still active, and commissions are still happening in most markets.
• Buyer-broker agreements are now required before agents show homes. This makes things clearer and holds people more responsible early on.
• Most buyers did not know how agents got paid before these changes. This made agents teach them more.
• Las Vegas real estate stayed strong. There is high competition, and investors check agents' performance carefully.

One year after the big changes to real estate commission rules caused by the National Association of Realtors (NAR) settlement, the industry did not fall apart as many feared. Rules changed. This meant new requirements, more paperwork, and early confusion. But how agents and clients work together is changing. It is becoming clearer, more focused on value, and more professional. In busy markets like Las Vegas, things are now calm. The industry is changing, not failing. We talked with Steve Hawks, an experienced agent. We looked closely at what is different and what buyers, sellers, and agents need to know now.

Commission Structure Before the NAR Settlement

Before the 2023 NAR settlement, most home sales in the United States used a set commission plan. Sellers usually agreed to pay a total commission of 5–6% of the sale price. This money was then split between the seller’s agent and the buyer's agent, often half and half. These commission offers were shown publicly in the Multiple Listing Service (MLS). So, buyer’s agents knew their pay ahead of time. This plan worked for many years. But it did not give buyers and sellers a clear view or many choices. People mainly criticized it for these reasons:

• Not Clear How Agents Were Paid: Most buyers did not know the seller was paying their agent through the commission splits.
• Less Competition: Lawsuits said that setting commission splits through the MLS encouraged fixed prices and stopped people from negotiating.
• Buyers and Sellers Had Little Power: Buyers and sellers had almost no say in how commissions were set. They thought the "industry standard" was fixed.

More people started to understand. And they asked for more choices and clearer information. Buyers wanted to know if their agent was really working for them, or just trying to get a standard commission. These old worries then led to more legal checks.

The NAR Settlement and Buyer Broker Changes

Key Changes from the 2023 NAR Settlement

The 2023 NAR settlement brought two main changes. These changes aimed to go against the usual way commissions were set up. They also aimed to make agent and client duties fit better:

1. No More Commission Listings on the MLS:
   MLS platforms cannot show offers of pay for buyer’s agents anymore. This change took away the automatic, hidden display of commission splits. It made real estate workers handle pay talks on their own.

2. Mandatory Buyer-Broker Agreements:
   Buyer’s agents must have a signed contract with clients before they show homes. These buyer agreements must say what the agent will do, what services they offer, and how they get paid. This sets the money side of things before anyone sees a home.

Why It Matters

These changes aim to get people talking openly about how agents get paid. And they aim to help buyers and sellers understand more and have more control. Buyers no longer just assume commission is set ahead of time. Now they can:

• Talk about what their agent will do for them.
• Know what their agent must do.
• Choose how their agent gets paid and how much.

This makes things clearer and more about what the buyer or seller needs.

Early Concerns and Doomsday Predictions

When these changes came out, people in real estate felt worried, some even thought it would be a disaster. Some of the worst things people said would happen were:

• 🔻 Buyers would not want to pay agent fees themselves. This might mean fewer buyers would use an agent.
• ✂️ Dual agency (where one agent works for both the buyer and seller) would increase. This could hurt the agent's duty to act only in their client's best interest.
• 🧯 Many agents would leave the business. This would happen because they would earn less money and get fewer deals.
• 🏠 Home prices might fall. This would happen because fewer deals would close and fewer buyers would be looking for homes.

Online forums, blogs, and news stories worried that real estate would quickly become two different industries. Some agents would accept the new rules. Other agents would stop working with buyers completely.

Busy real estate markets like Las Vegas were seen as especially at risk. Many flippers, rich investors, and fast deals are in Las Vegas. So, changes in how commissions were shown and shared could have messed up smooth deal-making.

But did those worries come true?

Forms and Compliance: The Real Headache

In real life, the biggest problem at first was not buyers leaving or many bad outcomes. It was the complicated new forms and rules.

Early Confusion Among Buyers and Agents

Steve Hawks, a top Las Vegas real estate agent, talked about the first weeks these changes were put in place:

“People were really confused,” Hawks said. “Some buyers thought we were trying to get them to pay more. Or they thought we were changing the rules in the middle of things. But once we explained it clearly, most understood. They saw we were just making official what was always understood.”

Many buyers were not used to signing anything before seeing homes. So, they were surprised. Agents had to start talking about rules and signing contracts sooner. They did this earlier in the process of working with clients. Agents who did not do this risked breaking new rules or losing trust with clients.

Brokerage Response and System Changes

At the same time, real estate offices quickly worked to:

• Teach agents the buyer-broker rules.
• Change their CRM systems to keep tabs on signed deals.
• Change how new agents are brought in. This was done to follow state and local ways of understanding the new rules.

Forms and how they were understood were different in each area. Many states brought in or changed their own buyer-broker forms. It took months for the best ways to use them to show up. And it took time for the forms to become normal for daily use.

The Impact on Buyer-Agent Relationships

Buyer-broker agreements became required. These forms used to be optional, but now they are key contracts. This changed how buyers usually worked with agents.

Shifting Expectations

Buyers are slowly starting to value what they once took for granted. Or they now understand what they misunderstood about how agents get paid. Now:

• 📌 Buyers ask more often about the services they get.
• 🤝 They want the agent's work to match the fees they expect to pay.
• 📋 They feel more able to ask for different price offers. Or they can talk about how they will pay.

Especially in markets like Las Vegas, many buyers are investors or smart with money. So, asking agents, “What do you offer?” is now a common thing to do.

Long-Term Effects

This shift in how things are done is starting to remove agents who do not do much or just handle deals. It is rewarding agents who focus on what they offer, have special skills, and teach clients. The idea of trusting first and then getting clear info later is changing. Now it is about contracts first and then helping people with advice.

Fees, Negotiations, and the Shift in Transparency

What’s Really Happening with Agent Compensation?

MLS rules limit what is shown. But most real estate deals still include pay for buyer agents. However, how this pay is shared and talked about is different now:

• 🎯 Sellers often offer pay in an unwritten way. Or they do it through seller discounts.
• 🤐 Listing agents now talk about pay with buyer agents away from the MLS. They do this by contacting them directly or by sharing info.
• 💬 Buyers and agents talk about fees early on. Many buyers agree to have the agent's pay come from the sale money. This happens through closing cost discounts or higher selling prices.

Transparency Gains, with a Caveat

On paper, these changes have made talks about pay more direct. But in real life, the industry has made other ways to keep commissions working. The job of a buyer agent has not gotten smaller. It has just become clearer.

One recent report said this:

“Most deals are still including buyer agent pay,” despite the changes to listings (Freedman, 2024).

This shows that buyers still want good help from an agent. They just know more and pick more carefully now.

What Changed in the Las Vegas Market?

Las Vegas is known for quick price jumps, cash buyers, and many investors. People thought it would be one of the worst-hit areas. But Steve Hawks said the market stayed strong and could change easily:

Key Observations from Las Vegas:

• ✅ Buyers were still very interested. And agents were still busy.
• 📉 The number of deals did not change much. This was true even with the new ways of doing things.
• 🔍 Investors care more about how much money agents help them make. They want agents to know the market well and have a clear plan.

Hawks thinks agents who accepted the changes, instead of fighting them, did the best. Clients liked clearer expectations. They liked talking about contracts early on. And they liked seeing a clear plan. This was true especially when buying hard-to-deal-with homes or those needing work.

“Clients like things to be clear,” Hawks said. “Especially serious investors. They are always checking the numbers.”

The Aftermath: Fears Averted, Business Continues

All in all, the NAR settlement brought more change than a big mess. None of the worst predictions came true in a big way. For example, buyers still have agents, and not many agents have left the business.

How Brokerages Benefitted from Early Action

Real estate offices that acted early are now working with:

• ⚖️ Better legal and right ways to protect themselves.
• 🤝 Better relationships with clients. These started when they talked early on.
• 🎓 Agents know better how to show clients what they offer.

These changes did not stop success. Instead, they led to stronger buyer-agent work. This work focuses on a plan, talking clearly, and good service. It is not just about simply helping a deal happen.

The Full Impact Is Yet to Be Seen

The short-term changes mostly worked well. But what happens over a longer time may still become clear in the next few years. Things to watch are:

• 🏛️ Current class-action lawsuits about commission methods in states other than Nevada.
• 📜 State changes to rules that protect buyers and sellers and tell them what they need to know.
• 📊 Market trials with flat-fee or pay-for-results commission types.

Hawks says agents and real estate offices must stay quick to change:

“We are steady now, but things might change again,” Hawks said. “This is a good time to really focus on teaching, following rules, and showing what agents offer.”

What Las Vegas Buyers and Sellers Need to Know

If you are buying or selling a home in Las Vegas now, it is very important to know what is happening. Here’s what you should do:

For Buyers:

• 📌 Talk about agent pay early. Ask how they get paid and what services you get.
• 📝 Sign a buyer-broker agreement before seeing homes. This makes sure things are legally clear and you have an agent working for you.
• 🔍 Check your agent like an advisor. Look at their experience, market plans, and how they talk prices down or up.

For Sellers:

• 💬 Choose if and how you will offer pay to a buyer agent, even if it is not on the MLS.
• 💰 Expect to talk about seller discounts that give buyer agents money in another way.
• 📁 Work with listing agents who have the latest rule-following papers. And they should know how to handle the new ways of doing things.

Looking Ahead: Industry Change Is Underway

Uber changed taxi services. Streaming changed entertainment. In the same way, real estate is starting to change. Buyers and sellers are acting in new ways. And agents must improve what they do.

New things showing up are:

• ⚙️ Flat-fee listings. Also, special agent plans for buyers.
• 👨‍💻 More use of tech in showing homes, sharing info, and e-signing.
• 🧠 Clients checking agent skills before they start working together, not after.

Agents like Steve Hawks are already changing how they work:

“This is not the end. It is a change,” Hawks said. “Agents who teach, who put clients first, and who make hard things simple will do well in this new time.”

Final Thoughts: Clear Information Has Replaced Confusion

The real estate industry's big worries did not happen. These were things like money problems, agents leaving, or fewer deals. Instead, markets like Las Vegas showed they could change. Experienced agents, buyers and sellers who knew what was going on, and simple rule-following systems caused this.

Changes to buyer agents and commission rules may still be changing the industry. But for both agents and clients, clear information—not muddled ideas—is now guiding things.

If you are working through buying or selling in Las Vegas, talk to Steve Hawks. He can help with advice that comes from his skills, being responsible, and knowing a lot about how the market has changed.

Citations

Freedman, A. (2024, April 2). A year after the real estate commission changes, industry has dodged doomsday. Retrieved from https://www.housingwire.com