NAR Settlement Scripts: Talking to Clients About Commission Changes

As real estate agents, we’re not just navigating new commission rules – we’re also explaining them to clients. Buyers and sellers have questions like “Does this NAR lawsuit mean I pay you differently?” or “Will I save money now?” Handling these conversations with confidence and honesty is crucial. Fortunately, industry leaders and coaches have developed NAR settlement scripts to help REALTORS® communicate the changes. In this friendly guide, we’ll cover common client Q&A and how to discuss buyer agent compensation in a way that builds trust. (Remember, clear communication is part of our job – and it’s emphasized in every Realtor ethics class and continuing education update for a reason!)

“Why Did Commissions Change?” – Explaining the Big Picture

Clients may ask: “What was that lawsuit about, and why are things changing?” You don’t need to dive into legal minutiae, but you should convey a simple summary: A class-action lawsuit alleged that the traditional system (where the seller’s commission offer to buyer agents was baked into the MLS) wasn’t transparent and kept fees high. NAR settled the case, and as a result we have new rules to increase transparency. You might say:

“There was a big lawsuit claiming the way agents get paid was confusing to consumers. So now, as part of a settlement, our industry is making changes to be more open. The main change is that as your agent I will have a written agreement with you about how I get paid, rather than it being automatically set behind the scenes. And everything about commissions is negotiable – it always has been, but now we’re highlighting that.”

This kind of explanation addresses the why without casting blame. It reassures the client that these changes are about giving them choices. NAR’s official consumer Q&A emphasizes that buyers and sellers still have full choices in how they want to handle commissions nar.realtornar.realtor – that’s a great talking point to echo.

If the client has heard sensationalized media stories (like “buyer agents are going away!”), you can gently correct that. The reality is buyer agents aren’t going anywhere – but we’re adapting to a slightly different fee disclosure system. In fact, NAR’s lawyers have publicly stated that buyer representation is not a thing of the past despite these changes empirelearning.com. You could mention that NAR is appealing some aspects but in the meantime, the new practices are being adopted to help everyone move forward empirelearning.com. The tone to strike: optimistic and proactive.

Common Questions from Buyers (and How to Answer)

1. “Do I have to pay you now? I thought the seller pays.”
Great answer: “Your agent has always been paid, it was just traditionally arranged via the seller. Now, we will decide together how my compensation is handled. Often, we can still negotiate for the seller to cover it – for example, we might include a request in your offer for the seller to pay $X toward my commission. If the seller won’t, then yes, we would make a plan for you to pay it. But remember, everything is negotiable nar.realtornar.realtor. My goal is to get you the home and make sure the numbers work out fairly.”

It’s important to not dodge this question. If the buyer may end up paying you, say so – but also assure them that you will advocate for them (which can include trying to get the seller to chip in, or adjusting the deal accordingly). By law in many states (and per the new NAR rules), you’ll disclose upfront the exact percentage or fee you expect nar.realtornar.realtor, so the buyer shouldn’t be blindsided later.

2. “What does this written agreement mean? What am I signing?”
Buyers now must sign a written buyer-broker agreement before you show homes nar.realtornar.realtor. Clients might be unfamiliar with this if your market didn’t use them before. Explain it in positive terms: “This agreement is basically to formalize our partnership. It outlines that I’ll represent you, the services I’ll provide, and how I’ll be compensated. It also clearly states that commissions are negotiable and we’ve agreed on the arrangement. Many states have already required these for years – it ultimately protects both of us by making sure we’re on the same page.” Emphasize that it’s not an extra contract to spook them, but a clarity tool. You can compare it to a listing agreement that sellers sign with listing agents – now buyers have their equivalent.

3. “Will I save money because of the settlement?” (Buyers or sellers might ask this.)
This is a bit tricky – some media headlines suggested consumers would pay less commission now. The honest answer is: it depends on the situation, and it might or might not change what a particular client pays. For a seller, you might say: “Potentially, yes – you might decide to offer less commission to a buyer’s agent than you would have before. However, you could also find that offering a competitive commission helps attract buyers. The market will dictate some of that. What’s important is now you have the option. Nothing is fixed.” For a buyer asking if they save money, you might explain: “In theory, if sellers start paying less, the sale prices might adjust or you might negotiate to pay your agent separately. You’re not automatically getting a discount on the house – but you do have more flexibility to negotiate how your agent is paid. My promise is I’ll make sure whatever we do, you feel it’s fair and worth it.” Citing early outcomes can help; for instance, note that in the first few months after the changes, average commission rates didn’t drastically drop empirelearning.com – meaning buyers weren’t suddenly getting homes cheaper, and sellers weren’t suddenly saving big. Over time, the market will find an equilibrium.

4. “What am I paying for, exactly?”
Some buyers (or sellers) might frankly ask why agents get the amounts they do. This is where your value proposition script comes in. Real estate coach Brian Icenhower suggests language like: “The landscape of real estate is evolving, not diminishing. The necessity now is not just to adapt but to excel in a skill-based market… Our dialogue should pivot to relationship-building, where every client understands the value we bring to their real estate journey.” therealestatetrainer.com. In practical terms, list out what you do: “As your buyer’s agent, I’m not just opening doors. I’m analyzing market data to ensure you don’t overpay, negotiating fiercely on your behalf, coordinating inspections, financing, paperwork – I’m your project manager and advisor through a complex process. That’s the service you’re investing in.” Tie it back to them: “Ultimately, a smooth transaction and a successful purchase at a good price saves you money and stress. That’s my job for you.” This kind of script reframes the commission as an investment in professional help, rather than a grudging expense.

Talking to Sellers About Buyer Broker Compensation

Sellers have their own version of uncertainty: “Do I still need to offer a commission to buyer agents? How much?” Here’s a straightforward way to address it:

“Under the new rules, it’s 100% your choice what, if anything, you offer to a buyer’s agent. There’s no mandatory amount. However, think of it as a marketing strategy. Offering competitive buyer’s broker compensation can attract more agents to bring their buyers to your home chicagoagentmagazine.com. If you offer nothing, some agents might still show your home (they’re ethically not allowed to steer based on commission nar.realtor), but they might have an agreement that their buyer will need to pay them out-of-pocket, which could discourage those buyers. Many sellers are still opting to offer something like 2% or 2.5% to buyer agents to maximize interest. We can decide based on your local market conditions. And remember, whatever we do offer, you only pay it if the buyer’s agent’s client actually purchases your home.”

By explaining it this way, you’re helping the seller weigh pros and cons. You also referenced the Realtor Code of Ethics (which prohibits steering clients away from low-commission listings) nar.realtor – letting the seller know that even if they offer less, agents shouldn’t boycott their listing (at least not overtly). It’s about what will help them get the best outcome. Many sellers will continue offering typical commissions, at least while the system is in transition.

Emphasize Ethics and Transparency

No matter who you’re talking to, two themes should shine through: ethics and transparency. Reassure clients that as a Realtor®, you adhere to a strict Code of Ethics which puts their interests first. NAR has reminded all members that despite changes, Realtors are ethically obligated to work in the client’s best interest nar.realtor. You might say, “My goal – regardless of how I’m paid – is to get you the best result. That’s my fiduciary duty to you.” Also mention that you welcome questions. Sometimes just telling a client “If anything is unclear or seems fishy, please ask me – I’m happy to explain how we get to my compensation” can build a lot of trust.

Industry leaders like Tom Ferry and others have been coaching agents on these scripts, essentially telling us: don’t shy away from the topic. By embracing transparency, you actually differentiate yourself. Clients appreciate candor. NAR’s own messaging encourages “clear communication with consumers about compensation” empirelearning.com – no more dancing around the issue.

Lastly, feel free to use resources to back you up. NAR has the facts.realtor website with FAQs you can share, and even created home buyer and seller guides to the changes that you can hand out nar.realtor. Sometimes showing a skeptical client an official source that says “commissions are negotiable” or a DOJ statement about not calling agents’ services “free” can validate what you’re saying.

Practice Makes Perfect

It might be worth role-playing these conversations with colleagues or your broker. Much like practicing a listing presentation, practicing your “commission change” script will make it come out naturally when real clients ask. Consider writing down bullet points or using some of the script language provided by coaching programs (Brian Buffini, Tom Ferry, and others have shared their takes). Adapt it to your voice so you don’t sound robotic.

Remember, this is new for consumers too. Even savvy clients might have misunderstandings. Your calm, informed explanation can reassure them that nothing bad is happening – it’s actually a consumer-friendly change. As one script suggests, frame it as an improvement: “These changes are a chance to reinforce the value I provide and ensure you’re comfortable with how I earn my living. It makes our working relationship even more transparent.” When said sincerely, that can really disarm any tension around the money topic.

In conclusion, talking about commissions may never be anyone’s favorite subject, but it doesn’t have to be uncomfortable. By educating yourself (through resources like NAR’s FAQ and maybe a dedicated real estate CE course on brokerage relationships), you’ll be ready to educate your clients. And an educated client who understands the “why” and “how” of buyer agent compensation is more likely to trust you – and happily refer you business down the line.

Sources:

• NAR “The Facts” FAQ – Home Buyer and Seller Guides (client-facing explanation) nar.realtornar.realtor
• Icenhower Coaching – NAR Settlement Scripts for REALTORS® therealestatetrainer.comtherealestatetrainer.com
• National Association of REALTORS® – Buyer Representation Not a Thing of the Past empirelearning.com (emphasizing ongoing importance of buyer’s agents)
• REALTOR® Magazine – Practice Changes: Key Reminders nar.realtornar.realtor

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