Industry changes to Realtor® commissions

Last updated: May 8, 2026 with two years of post-settlement market experience.

The 2024 NAR settlement that fundamentally restructured how real estate commissions work has been in effect since August 17, 2024. We are now nearly two years into the new system, and the actual experience for buyers and sellers in Utah is clearer than the speculation that filled the 2024 news cycle. Here is what changed, what has actually played out on the Wasatch Front, and what you need to know if you are buying or selling in 2026.

The Core Change in Plain English

Before August 2024: When a seller listed a home, the listing agreement typically committed the seller to paying both the listing agent’s commission AND the buyer’s agent’s commission, with the total split shown on the MLS for buyer agents to see. Buyers usually did not pay their agent directly because the seller’s side covered it.

After August 2024: The MLS no longer displays buyer-agent compensation. Buyers are required to sign a written agreement with their agent before any home tour, spelling out exactly what their agent will be paid. Sellers can still offer to cover the buyer agent’s compensation, but it is now a separate negotiation, not an MLS-published default.

That is the structural shift. The downstream effects have been more interesting.

What Actually Happened on the Wasatch Front

1. Seller contribution toward the buyer’s agent is now a negotiation

The headline fear in 2024 was that sellers would stop offering buyer-agent compensation entirely, leaving buyers to pay out of pocket. That has not happened in our service area. The vast majority of Wasatch Front sellers continue to offer buyer-agent compensation as part of the deal, because (a) it widens the buyer pool by making the home accessible to more buyers and (b) it usually results in a higher net sale price than refusing to offer it.

2. The total commission percentage has compressed slightly

Pricing is now visibly competitive in a way it was not before. Brokerages set their own fees independently and compete on them, and because the two fees are negotiated separately with two different brokerages there is no single combined number to quote. What changed is not that a rate moved, it is that the rate is now openly negotiated in every transaction rather than assumed. Ask each brokerage what it charges and compare the answers.

3. Buyer-agent agreements are now a real conversation

Buyers have to sign a representation agreement with their agent before any home tour. That is a meaningful behavior change. The result is that more buyer-agent relationships start with an actual conversation about scope, expectations, and value, which is a good thing for everyone.

4. Buyers occasionally pay their own agent directly

In some deals, especially with new construction builders or with sellers who choose not to offer buyer-agent compensation, buyers do end up paying their agent’s commission directly. This is more common in cases where the buyer is paying cash or has flexibility on closing costs, less common with first-time buyers who need every dollar for down payment and closing.

What This Means If You Are Selling a Home in 2026

Three practical implications:

• You decide what you offer for buyer-agent compensation. It is no longer a fixed expectation. We discuss the trade-offs with every seller before we list.
• Refusing to offer buyer-agent compensation usually nets you less. The buyer pool that has the cash flexibility to pay their own agent is meaningfully smaller than the buyer pool that needs that cost covered. Refusing typically means thinner offer activity and lower final sale price.
• Total commission is more negotiable than it was. Total deals at 5 percent are now common where 6 percent was standard. That is real money on a $625,000 South Jordan median home, about $6,250 in your pocket.

What This Means If You Are Buying a Home in 2026

Three practical implications:

• You will sign a buyer-agent agreement before touring homes. Read it. Understand what your agent will be paid, by whom, and under what conditions.
• Seller contribution is negotiated per deal. A seller may agree to cover some, all, or none of your agent’s fee. Your buyer agreement should state the fee clearly and spell out exactly what happens if a particular seller declines to contribute.
• Negotiate the seller-paid compensation up front. When you write an offer, the offer can include a request for the seller to cover buyer-agent compensation as part of the deal terms. Strong offers in competitive situations sometimes use this as a negotiation lever.

The Litigation Picture in 2026

The original 2024 NAR settlement resolved the major class-action exposure (Sitzer/Burnett, Moehrl, etc.) but additional lawsuits have continued to filter through. Most are settling along similar lines. Practical implication for buyers and sellers: the rules in place today are the rules you should plan around. Future tweaks are possible but unlikely to be dramatic.

Frequently Asked Questions

Did the NAR settlement eliminate buyer-agent commissions?

No. It eliminated the MLS publication of buyer-agent compensation and required written buyer-agent agreements before tours. Buyer agents still get paid; the mechanism just changed. In most Wasatch Front deals in 2025 and 2026, sellers still cover buyer-agent compensation as part of the deal terms.

What is a typical commission on a home sale in Utah in 2026?

There is no typical rate, and that is not evasion, it is the actual answer. Utah has no standard, customary, or state-set commission rate. There are two separate fees, negotiated separately with two different brokerages: the listing fee the seller agrees with the listing brokerage, and the buyer-agent fee the buyer agrees in writing with their own agent. Every brokerage prices independently. The only reliable way to find out what a sale will cost you is to ask each brokerage you interview to quote its own fee in writing.

Do I have to pay my buyer agent directly when I buy a home?

Sometimes. If the seller offers to cover buyer-agent compensation in the deal terms (which is the most common outcome on the Wasatch Front), you do not pay out of pocket. If the seller refuses or the listing does not include compensation, you will be responsible per your buyer-agent agreement, unless you negotiate it as part of your offer.

Can I see what the buyer agent will be paid on a home before I tour it?

Not via the MLS. Your buyer agent can ask the listing agent directly, and that information is generally shared. The buyer-agent agreement you sign will explain how compensation works in your specific representation arrangement.

Are commissions cheaper now than before the settlement?

It can, and whether it does is now up to you rather than to convention. Because the two fees are negotiated separately and nothing is posted in the MLS, a seller decides the listing fee with their brokerage and decides separately, offer by offer, whether to contribute anything toward the buyer’s side. Both decisions are yours to make and both are worth taking seriously, because on a $625,000 home a single percentage point is about $6,250.

Do new construction builders cover buyer-agent commissions in 2026?

Most major Wasatch Front builders still offer buyer-agent compensation, though the structure varies by builder and by inventory. Some builders run special promotions where they offer enhanced buyer-agent compensation. Always ask your buyer agent to confirm the specific builder policy before you tour.

Should I refuse to offer buyer-agent compensation when I sell my home?

It is entirely your decision, and there is no default. Some sellers offer to cover part or all of the buyer’s agent fee, some offer nothing and let the buyer handle it, and both approaches are legitimate. Because buyer-agent compensation was removed from the MLS in 2024, an agent cannot filter or skip your listing based on what you offer, which is the protection sellers did not have before. What makes sense for your home depends on your price point, your likely buyer pool, and how the home is positioned. It is a term of each offer rather than a decision you have to make before you list, and it is worth talking through during listing prep.

Want to Talk Through Your Specific Situation?

Real estate transactions are personal. The post-settlement environment changes the conversation but not the fundamentals: pricing strategy, pre-listing prep, marketing exposure, and negotiation still drive the outcome. Call 801-999-8005 or email hello@krisbowen.com to talk through what the new commission structure means for your specific buy or sell decision. We use the 163-Step Home Selling Process™ on every listing to make sure pricing and presentation are dialed in regardless of commission structure.

For more current market context, see our Spring 2026 Utah Market Update and Is the Utah Real Estate Market Crashing.

Read also: Utah real estate commissions explained