How the 2024 NAR Commission Changes Affect Home Buyers and Sellers in Franklin County, Missouri

In 2024, the National Association of Realtors (NAR) agreed to a landmark settlement that changed how real estate commissions are handled across the United States. These rule changes officially began on August 17, 2024, and they affect how buyers, sellers, and agents handle commissions today.

If you are buying or selling a home in Franklin County, Washington MO, St. Clair, Gerald, or nearby St. Louis and St. Charles counties, this is what actually matters to you.

This is not a national news story for you. This is a local process change. And understanding it early helps you avoid confusion, mistakes, and unexpected costs during your transaction.

What Exactly Changed After the NAR Settlement?

For decades, the real estate process followed an unwritten tradition: sellers typically paid both their listing agent and the buyer’s agent through a combined commission shown in the MLS. Buyers rarely thought about how their agent was paid.

That system is now gone.

• MLS listings can no longer display buyer-agent commission offers
• Buyers must sign a written representation agreement before touring homes
• Commissions are now openly negotiable between clients and agents
• Sellers are no longer expected to automatically pay the buyer’s agent

This means commission is no longer hidden in the background. It is now part of the conversation from day one.

Why This Feels Confusing (and Why It Doesn’t Have to Be)

Most buyers and sellers are used to the old system. So when they hear “buyers may have to pay their own agent now,” it sounds alarming.

But the reality is more practical than dramatic.

Many sellers in Franklin County still choose to offer buyer-agent compensation because it attracts more buyers and smoother offers. The difference is that this decision is now deliberate instead of automatic.

The change is about transparency and choice, not forcing new costs on people.

What This Means for Home Buyers in Franklin County

If you are buying a home, you will now sign a representation agreement with your agent before touring homes. This document explains clearly how your agent will be paid.

You can negotiate:

• A percentage fee
• A flat fee
• Different service levels depending on your needs

When you make an offer on a home, your agent will help you determine whether the seller is offering compensation toward your agent’s fee. If not, this becomes part of the negotiation during the offer.

This gives buyers more control — but also means you should understand the conversation early instead of being surprised later.

What This Means for Sellers in Washington, St. Clair, and Gerald

Sellers now decide what they want to offer buyer agents. You may:

• Offer a full commission
• Offer a partial commission
• Offer no commission and adjust pricing strategy

This is not simply a way to “save money.” Offering no buyer-agent compensation can reduce interest from buyers or require price adjustments to stay competitive.

Dolan Realtors helps sellers understand what other listings in Franklin County are offering so you can make an informed decision, not a risky one.

Are Commission Rates Dropping Because of This?

Industry data through 2025 shows only small changes in average commission rates nationwide. Most transactions still look very similar to how they did before August 2024.

Why? Because buyers still want professional representation, and sellers still want strong offers.

The real change is not lower fees yet — it is clearer conversations about fees.

The Biggest Mistake Buyers and Sellers Can Make Right Now

The biggest mistake is assuming the process is still the same as before and not asking questions early.

Buyers should not wait until making an offer to understand how their agent is paid.

Sellers should not assume removing buyer-agent commission will automatically save money without affecting buyer interest.

This is where working with a local team that understands both the rules and the Franklin County market makes a difference.

How Dolan Realtors Guides Clients Through the New Process

For buyers, Dolan Realtors explains clearly:

• What your representation agreement means
• How commission can be negotiated during offers
• What options exist if a seller offers no buyer-agent compensation

For sellers, Dolan Realtors explains:

• What competing listings in Franklin County are offering
• How commission decisions affect showing traffic
• How to structure pricing if you reduce commission

The goal is simple: no surprises and no confusion during the transaction.

What This Looks Like in Real Life (Franklin County Examples)

In some Washington MO listings, sellers continue to offer buyer-agent compensation because homes are moving quickly and they want maximum exposure.

In slower markets or higher price ranges, some sellers experiment with reduced buyer-agent fees and adjust listing prices accordingly.

Buyers are learning to discuss commission openly with their agents before touring homes, which actually leads to smoother negotiations later.

Frequently Asked Questions

Do buyers have to pay their agent now?

Not always. Many sellers still offer compensation. But buyers must be prepared for the possibility and discuss it early.

Should sellers stop offering buyer-agent commission?

Not automatically. This depends on your competition and how quickly homes are selling in your area.

Can I negotiate commission with my agent?

Yes. Commission is now openly negotiable for both buyers and sellers.

Why do I need a representation agreement before touring homes?

This is now required under the new rules to ensure transparency about how agents are compensated.

Why Local Knowledge Matters More Than National Headlines

National news focuses on the lawsuit and settlement. What matters to you is how buyers and sellers behave in Franklin County.

Commission strategy that works in large cities may not work in Washington, MO or Gerald. Understanding local expectations is more important than understanding national headlines.

The Real Opportunity in This Change

This rule change gives buyers and sellers something they never had before: clarity.

You now understand exactly:

• What you’re paying
• What you’re offering
• How it affects your transaction

That clarity allows for smarter decisions and better negotiations.

In this new landscape, informed clients make better decisions. Our role is to ensure you understand your options before you list a home or start touring one.