The NAR lawsuit exposed which agents are willing to adapt and which ones are not.

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The NAR lawsuit settlement that took effect on August 17, 2024, changed how buyer agent compensation gets handled in a sale. Much of the industry responded with resistance and complaint. My view is different: handled correctly, these changes are a real opportunity for sellers.

After more than 15 years in real estate and 500-plus transactions across the Conejo Valley, Ventura County and west Los Angeles, I've learned that success comes from adapting to change, not fighting it. The agents doing well under these rules are the ones who understand how to use them. Here's how we're applying them to get better results for our clients, especially sellers.

What Actually Changed with the NAR Settlement?

The most significant change is that sellers are no longer expected to write a blank check for buyer agent compensation. Previously, sellers would automatically agree to pay a predetermined percentage to the buyer's agent, regardless of the offer quality or negotiation dynamics.

Now, buyer agent compensation is part of the negotiation itself. When a buyer submits an offer, it typically includes the compensation the buyer's agent is requesting from the seller. That gives sellers a negotiating tool they didn't have before.

How Do These Changes Benefit Sellers?

Compensation used to be a fixed cost of selling. It is now a term in the negotiation, and that opens up options.

Here's how it works in practice: when a buyer makes an offer, they specify the compensation their agent wants from the seller. We review both the offer terms and the compensation request together. This allows us to tie compensation directly to offer quality, creating immediate incentive for buyers to submit their strongest offers upfront.

For sellers in competitive markets like Westlake Village, Thousand Oaks, or Calabasas, this means we can encourage multiple buyers to compete not just on price, but on overall offer strength, knowing that compensation is tied to performance.

What's the Strategic Negotiation Process?

The real power comes in how we handle counteroffers. Let's say we receive an offer at $975,000 but want $980,000. Under the old system, we'd simply counter at $980,000 and hope for the best. Now, we have an additional negotiating lever.

When we counter at $980,000, we also communicate to the buyer's agent that we're willing to pay their requested compensation at that price point. However, and this is the crucial part, we make it clear that if the buyer wants to negotiate further below $980,000, the first item that will be reduced is the agent compensation.

This changes the conversation on the buyer's side. The buyer's agent still owes their client honest advice, but they now have a clear reason to present our counter at $980,000 in full context rather than push for another round, since a further reduction comes partly out of their compensation. In our experience, that tends to shorten the back and forth.

Why Are Some Agents Struggling with These Changes?

The resistance across the industry isn't because these changes are bad for consumers or even agents. It's discomfort with doing business differently than before. Real estate has never stood still, and the market keeps moving whether agents adjust or not.

Agents who treat the rules as an obstacle tend to leave this lever unused, and their sellers lose a negotiating tool because of it.

If you're selling in Newbury Park, Oak Park, Agoura Hills, or anywhere else in the Conejo Valley, the question to ask is simple: does your agent understand how compensation works now, and how will they use it on your behalf?

How Should Sellers Choose an Agent in This New Environment?

The settlement has sorted agents into two groups: those who adapted and put the change to work, and those who are still complaining about it. For sellers, the difference can be substantial.

Look for agents who understand these new negotiation dynamics and can explain specifically how they'll use them to benefit your sale. Ask how they handle buyer agent compensation in negotiations and whether they view the changes as opportunities or obstacles.

The agents getting the best results treat compensation as a negotiable term rather than a fixed cost. In markets like Simi Valley, Sherman Oaks, or Encino, that one shift can affect both price and terms. Before you list, it's worth reading why selling a home means you should be fully informed about every available strategy. And if you'd rather talk it through over lunch than in an office, Lure Fish House in Westlake works for me.

What Does This Mean for Your Next Sale?

If you're considering selling, these changes work in your favor when handled correctly. You have more say over costs and one more lever in negotiation. The key is an agent who understands how to get sellers top dollar and treats compensation as part of that plan.

Compensation isn't the only thing buyers are negotiating. With affordability stretched, many are also asking sellers to fund concessions such as the 2-1 buydown strategy, so it helps to read every request in an offer as one combined number. The decision itself can wait until you've had a glass at The Stonehaus, a walk at Wildwood Regional Park, or an errand at The Promenade at Westlake. What shouldn't wait is choosing an agent who understands how these pieces fit together.

The right approach depends on your home, your market and your goals. Compensation terms are contractual, so review your listing agreement and any offer language with your agent and, if you have questions, your attorney. If you're weighing a sale and want to know whether this applies to you, I'm happy to talk it through. You can reach me at davisbartels.com. For more depth, see our guides to selling your home in Conejo Valley in 2026 and selling your home in Westlake Village.