The August 2024 NAR (National Association of Realtors) settlement changed how buyer-agent compensation is structured in U.S. real estate transactions, including Utah. Buyer agent commissions are now negotiated separately from listing agreements, can no longer be offered through the MLS in some markets, and buyers must sign their own agent agreements. The practical effect in Utah: total transaction costs are similar, but the structure is more visible and more flexible. Sellers and buyers both have more options — and more decisions to make.

What the settlement actually changed

The NAR settlement addressed several practices that had been standard for decades:

Before August 2024

Listing agreements typically specified a combined commission (typically 5-6%)
Listing agent received their portion (typically 2.5-3%)
Buyer agent received their portion (typically 2.5-3%) automatically
Buyer agent compensation was published in the MLS
Buyers signed agency agreements with their agents but commissions were “paid by seller”

After August 2024

Listing agreements specify only the listing agent’s commission
Buyer agent compensation is negotiated separately
Buyer agent compensation may not be advertised in the MLS (varies by MLS rules)
Buyers must sign written buyer-agency agreements before touring homes
Buyer agents can be paid by buyers, sellers, or splits between them

How it’s worked in Utah practice

Despite the structural changes, most Utah transactions still net out similarly to pre-2024:

Listing agreements

Most Utah listing agents charge 2.5-3% as before. The change: this is now explicitly the listing agent’s compensation, not “combined.”

Buyer agent compensation

Most sellers still offer 2-3% to buyer agents, though now through one of three paths:

Listing agreement allows seller-paid buyer compensation — most common
Purchase agreement includes seller credit toward buyer agent fee — increasingly common
Buyer pays agent directly — least common but growing

The total cost to the seller is typically similar to pre-2024, just structured differently.

Buyer agreements

Buyers now sign written agreements with their agents specifying:

Services the agent will provide
Compensation amount (percentage or flat fee)
Who pays (seller, buyer, or split)
Duration of agreement

This is required by Utah law as of August 2024 — agents cannot tour homes with buyers without signed agreements.

What sellers actually do now

Three approaches Utah sellers are taking in 2026:

Continue offering 2-3% to buyer agents (most common)

The listing agreement specifies that the seller will pay X% to the buyer’s agent. Listing agent communicates this to other agents. Effectively the same as pre-2024 from the seller’s perspective.

Offer less and negotiate at offer time

Some sellers offer 0-2% in their initial listing, knowing that strong buyer agents will negotiate for credit through the purchase agreement. Slightly riskier but can save money.

Cap the buyer agent compensation

Some sellers offer “up to 2.5%” or “buyer pays own agent.” Limits seller’s exposure but can shrink the buyer pool — strong buyer agents won’t show homes that don’t compensate properly.

What buyers actually do now

Three approaches Utah buyers are navigating:

Standard arrangement (most common)

Buyer signs agreement with agent at 2.5-3%. Buyer expects seller to cover this through listing agreement or purchase agreement credit.

Buyer-paid arrangement

Buyer pays own agent directly (out of pocket or rolled into loan via lender credit). Buyer typically uses this to make offers more competitive (no seller concession ask).

Hybrid arrangement

Buyer agrees to compensate own agent X%, will request seller to cover up to that amount through purchase agreement. If seller offers less, buyer covers the difference.

How the changes affect price negotiations

The new structure has made compensation more visible, which has subtle effects:

Sellers see more clearly what they’re paying

Pre-2024 commission was a single “5-6%” number. Now sellers see “2.5% listing agent + 2.5% buyer credit + closing costs” as separate line items. This sometimes prompts harder negotiation on each item.

Buyer agent value is more scrutinized

Buyers signing direct agreements ask more questions about what their agent does. Strong agents have benefitted; weaker ones have struggled.

Negotiation flexibility increased

Some buyers structure offers as “purchase price + seller credit toward buyer agent fee” rather than just lower purchase price. This can preserve seller’s effective net while reducing buyer’s cash-to-close.

Common misconceptions

Four patterns of confusion:

“I don’t need a buyer agent anymore”

False. Strong buyer representation is more important than ever. The transaction is more complex, and buyers without experienced advocates often pay more or get worse terms.

”Sellers are saving money now”

Mostly false. Total transaction costs in Utah remain similar to pre-2024. Some sellers save 0.5-1% through negotiation; most pay similar amounts in different structures.

”Commissions are now negotiable”

True, but commissions were always negotiable. The settlement made this more visible, not more legally possible.

”Listing agents are getting paid more”

False. Listing agents continue to charge what they always charged. The change shifted how buyer agent compensation is structured, not its total cost.

What this means for your Utah transaction

If you’re selling

Discuss buyer agent compensation strategy with your listing agent early
Understand that 0% buyer agent compensation may shrink your buyer pool
2-3% remains the typical range; below 2% reduces interest
Total transaction cost depends more on your home and negotiation than on the new rules

If you’re buying

Sign your buyer agency agreement before touring homes (legally required now)
Discuss compensation upfront with your agent
Understand seller’s offered compensation when reviewing homes
Be prepared to negotiate compensation through the purchase agreement if needed

When the changes do matter

Three scenarios where the new rules genuinely shift outcomes:

Cash buyers and pure investors

Investor buyers without traditional agents save the buyer-side commission. The savings can be 2-3% on every purchase.

FSBO transactions

Sellers going FSBO now have clearer authority to refuse buyer agent compensation. See our FSBO guide for the full picture.

High-volume buyers

Investors or developers buying multiple properties can negotiate flat-fee or reduced commission structures with buyer agents, capitalizing on the new transparency.

What to do next

Whether you’re buying or selling in Utah in 2026, the right approach is:

Sellers

Get a free home valuation with current commission structure recommendations
Discuss negotiation strategy with your listing agent
Understand all line items, not just headline commission percentage

Buyers

Sign a buyer agency agreement with a clear, experienced agent
Discuss how compensation will be structured (seller-paid vs buyer-paid)
Don’t skip representation — the transaction is more complex now

Reach out to Andrew for either buyer or seller representation. We work transparently on compensation structures and will explain exactly what each line item means for your specific transaction.

The NAR settlement made commissions more visible. The fundamentals — buyer representation matters, seller representation matters, total costs are similar — haven’t changed.

How the 2024 NAR Commission Rules Changed Selling a Home in Utah