Understanding the NAR Settlement: What It Means for Real Estate Commissions in Michigan

The recent settlement involving the National Association of Realtors (NAR) has sparked a lot of conversation—and confusion—around how real estate commissions work. If you’re buying or selling a home in Michigan, here’s what you actually need to know.

What Changed?

Historically, sellers typically offered compensation to buyer agents through the MLS. As part of the settlement, those offers will no longer be displayed in the MLS. This change is designed to increase transparency and give buyers and sellers more control over how commissions are structured.

What This Means for Sellers

Sellers still have flexibility. You can:

• Offer compensation to a buyer’s agent (just negotiated outside of the MLS)
• Choose not to offer compensation at all
• Negotiate commission terms directly as part of an offer

In short, nothing is “set”—everything is negotiable.

What This Means for Buyers

Buyers will now be required to sign a written agreement with their agent before touring homes. This agreement outlines how your agent is compensated and ensures you understand your representation.

In some cases, buyers may be responsible for paying their agent directly—but that cost can often still be negotiated within the purchase offer.

The Big Picture

While the structure is evolving, the fundamentals haven’t changed:

• Agents are still paid for their expertise and results
• Commission has always been negotiable
• Strong representation still matters—on both sides of the transaction

What This Means in Michigan

Michigan follows these changes just like the rest of the country, but local market dynamics still play a big role. In competitive markets, sellers may still choose to offer buyer agent compensation to attract more buyers. In other situations, buyers may negotiate those costs into their offer strategy.

Bottom Line

The NAR settlement doesn’t eliminate commissions—it simply shifts how they’re communicated and negotiated.

Whether you’re buying or selling, the key is having a clear plan, understanding your options, and working with a professional who can guide you through the process with confidence.

Have questions about how this impacts your next move?
Reach out anytime—we’re here to help you navigate the changes and make smart, informed decisions.