How Commission Works for Sellers in the Washington DC Region (Post-NAR Settlement Update)
If you're thinking of selling your home in the Washington DC region, you’ve probably heard about recent changes to how real estate commissions work. So you might be wondering: “How do commissions work now—and what does the NAR settlement mean for me as a seller?”
In this guide, Washington DC area Realtor Dan Wheeler breaks down how real estate commissions are structured in today’s post-settlement landscape, what’s changed, and what sellers should know when listing their home in DC, Maryland, or Virginia.
What Is the NAR Settlement, and Why Does It Matter?
In 2024, the National Association of REALTORS® (NAR) reached a legal settlement that significantly impacted how buyer agent commissions are handled.
Key Changes:
- Sellers are no longer required to offer compensation to the buyer’s agent through the MLS.
- Buyer-broker agreements are now required, meaning buyers must agree in writing to how much and how their agent will be paid.
- Commission offers can still be made, but they must be negotiated outside the MLS.
These changes aim to increase transparency and promote consumer choice—but they also mean sellers need to be more informed and strategic.
How Commissions Used to Work in the DMV Region
Traditionally, sellers paid a total commission (often 5%–6% of the sale price), which was split between:
- Listing Agent (seller’s agent): Typically 2.5%–3%
- Buyer’s Agent: Typically 2.5%–3%
This total fee was built into the sale price and negotiated upfront when the home was listed.
How Commissions Work Now in a Post-Settlement Market
Today, sellers are no longer obligated to offer compensation to the buyer’s agent—but they still can.
You Have Options:
- Offer compensation to the buyer’s agent as an incentive (outside the MLS)
- Negotiate commissions directly with your listing agent
- Let buyers cover their agent’s fee (may impact buyer interest or affordability)
Dan Wheeler helps sellers evaluate their options based on current market conditions, buyer demand, and home price point.
Should You Still Offer a Commission to the Buyer’s Agent?
In many cases, yes—especially if you want to attract the broadest pool of serious, qualified buyers.
Benefits of Offering Buyer Agent Compensation:
- Increases interest from represented buyers
- Reduces buyer out-of-pocket costs
- Helps maintain a smoother, more traditional transaction process
Not offering buyer agent compensation could limit your visibility or lead to fewer offers—but in some hot markets, sellers can succeed without it.
Dan Wheeler reviews these options with every seller and helps tailor a commission strategy that supports your bottom line.
How Are Listing Agent Fees Determined?
Commissions are always negotiable and should be discussed transparently before signing a listing agreement.
Things to Consider:
- Scope of services (marketing, staging, negotiation, coordination)
- Agent’s experience and local track record
- Level of support provided before, during, and after the sale
Dan Wheeler provides full-service representation with strategic marketing and negotiation included—designed to help you maximize your proceeds.
How Commission Agreements Are Documented
For Sellers:
- You sign a listing agreement that outlines the commission and terms of service
For Buyers:
- They must sign a buyer agency agreement before seeing homes with their agent
Dan ensures all agreements are explained clearly and comply with current regulations, including RESPA and local association rules.
Compliance and Transparency in Today’s Market
Dan Wheeler is committed to fair housing, full disclosure, and ethical real estate practices. He educates sellers about:
- Their rights and options regarding commissions
- Current market dynamics influencing compensation
- What’s changed in the DC region real estate landscape post-settlement
He’s always transparent about how he’s paid—and how that impacts your net proceeds.
Final Thoughts: Commissions Are Flexible—And Strategy Matters
Selling a home today requires a thoughtful, informed approach. Understanding your commission options—and working with a knowledgeable Realtor—can help you:
- Price your home accurately
- Attract motivated buyers
- Maximize your net proceeds
📞 Want to learn more? Contact Dan Wheeler Sells Home for a free, no-pressure consultation about listing your home in the Washington DC region under the new commission structure.
