📌 Key Takeaways
- The 2024 NAR settlement changed how buyer-agent commissions are advertised and negotiated — it did not make sellers stop paying them.
- In practice, most California sellers still offer to cover the buyer's agent, often as a concession to stay competitive.
- Because that commission funds Portfolio Home Realty, we rebate 1% of the purchase price back to you at closing.
After the NAR settlement, headlines screamed that buyers now have to pay their own agent. That's mostly a myth — here's what actually changed and who really pays in 2026.
What the NAR settlement actually changed
Effective August 17, 2024, the National Association of Realtors settlement made two real changes. First, buyer-agent compensation can no longer be advertised on the MLS — listing agents can't broadcast what a seller will pay a buyer's agent. Second, buyers must sign a written buyer-agency agreement before touring homes that spells out their agent's fee. That's it. Commissions were always legally negotiable; the settlement just made that explicit and moved the conversation off the MLS.
The big misconception
The headlines that said "sellers no longer pay the buyer's agent" were simply wrong. Sellers were never legally required to pay — but they very commonly did, and still do. Redfin data puts the typical buyer-agent commission around 2.55%, or roughly $15,000 on a typical sale. The underlying economics (buyers finance the purchase, sellers want maximum buyer demand) haven't changed, so seller-paid commission remains common. You can read NAR's own summary on the facts of the settlement.
So who pays in California in 2026?
The honest answer: it's negotiated, deal by deal. In most California transactions the seller still offers to cover the buyer's agent — often framed as a "concession" — to keep their home competitive. In some cases a buyer agrees to cover a gap between what the seller offers and what their agent charges. Your agent's job is to negotiate this into your offer so it costs you as little as possible out of pocket. (Curious how to make a strong offer? See our guide to writing a competitive offer in California.)
How a buyer rebate fits in
Here's the part that works in your favor. Portfolio Home Realty is paid from the buyer-side commission — which is typically seller-funded — and we rebate 1% of the purchase price back to you at closing. It's fully disclosed and legal in California. Learn exactly how the rebate works, how you can apply it to closing costs, and review our rebate & commission disclosure.
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Get my free rebate estimate →Frequently Asked Questions
Often, yes. Sellers aren't required to, but most still offer to cover the buyer's agent — frequently as a concession — because it keeps their home competitive. It's negotiated in each deal.
Yes. Since August 2024, California buyers must sign a written buyer-agency agreement before touring with an agent. It states the fee and who pays it — and everything in it is negotiable. See our guide to the buyer-agency agreement.
Yes. Buyer rebates are legal in California, fully disclosed in your agreement, and disclosed to your lender. They come from the buyer-side commission, so they don't reduce the seller's proceeds or weaken your offer.
Mike Basti founded Portfolio Home Realty to give Southern California buyers full-service representation and real cash back at closing. Licensed California broker serving LA County and Orange County. Call (949) 379-5320.
The bottom line
The NAR settlement changed paperwork and transparency, not the fundamental economics — California sellers still commonly pay the buyer's agent. The smartest move is to work with an agent who negotiates that for you and hands part of it back. Portfolio Home Realty returns 1% at closing — call (949) 379-5320 or get a free estimate.