Real Estate News

Homebuyers Seek Clarity on Buyer-Broker Agreements After Settlement Changes

Homebuyers navigate new buyer-broker agreement requirements after 2024 settlement changes. Understanding contract terms, compensation structures, and representation rights is essential for informed decisions

flareAI Services

22 Dec 2025 — 6 min read

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In the cozy neighborhoods of Holland, Michigan, a couple huddles over their laptop, puzzling over the terms of a buyer-broker agreement. Hundreds of miles away in Orlando, Florida, a young professional hesitates before signing a similar contract, wondering what their agent's fee really covers. The real estate landscape has shifted dramatically, and homebuyers across Michigan and Florida are navigating a new era of transparency. The NAR settlement in 2025 has dismantled long-standing commission norms, compelling buyers to demand clear answers about what they're paying for and why it matters.

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A Watershed Moment for Real Estate

The National Association of Realtor's settlement, finalized in early 2025, has reshaped the homebuying process. For decades, sellers typically covered a 5-6% commission, split between their agent and the buyer's, with the cost seamlessly embedded in the home's price. Buyers often assumed their agent's services came at no cost to them. That assumption is now history. The settlement mandates explicit buyer-broker agreements, requiring buyers to understand and agree to their agent's fees upfront. According to a Yahoo Finance analysis, these changes haven't significantly reduced overall costs but have forced buyers to confront fees directly, sparking a wave of questions and negotiations.

In Michigan, from the vibrant suburbs of Grand Rapids to the serene shores of Holland, this shift is reshaping buyer behavior. University of Michigan housing research highlights a growing awareness among buyers, who are now scrutinizing commission structures with newfound diligence. In Florida, where real estate transactions pulse through cities like Miami and Tampa, state Realtor associations report a similar trend: buyers are no longer content with vague assurances about agent fees. They want specifics, and they want them now.

This transformation isn't just about policy it's a cultural shift. Buyers are stepping into negotiations armed with knowledge, and technology is amplifying their power. Proptech platforms, with their digital tools and transparent interfaces, are emerging as critical allies in this new landscape, offering solutions tailored to local markets.

Local Markets, New Dynamics

In West Michigan, the impact of these changes feels deeply personal. In Holland, a mid-sized brokerage recently introduced a digital tool to simplify buyer-broker agreements, transforming how clients engage with the process. Buyers who once signed contracts without a second thought are now asking pointed questions about commission splits, often negotiating terms before even touring a home. One Holland agent noted, “Clients are coming to us with printouts from apps, ready to discuss fees before we talk square footage.” This shift has streamlined deals, cutting days off closing timelines in a region where personal trust has long defined real estate.

Florida's high-energy markets tell a parallel story. In Miami, where condos and single-family homes turn over rapidly, proptech apps are gaining ground. These platforms allow buyers to compare agent agreements side by side, offering instant clarity on fees and services. A Tampa realtor observed that clients are increasingly “shopping for agents” the way they shop for homes, a practice that was uncommon just a few years ago. In Orlando, first-time buyers are using digital calculators to weigh agent costs against their budgets, empowering them to make informed choices before committing.

The rise of transparency isn't limited to technology. Across both states, buyers are learning to negotiate commissions with the same rigor they apply to mortgage rates. As List with Clever outlines, this skill is becoming essential, with buyers in competitive markets leveraging data to secure better terms. The result is a more engaged, informed homebuying process one that's reshaping relationships between buyers and their agents.

Navigating Challenges in the New Normal

Despite the push for clarity, misunderstandings persist. Many buyers still assume their agent's fees are covered by the seller, a holdover from the pre-settlement era. In smaller Michigan markets like Holland, where personal relationships often drive deals, this misconception can lead to tense conversations. One West Michigan couple, for example, was blindsided to learn their agent's fee wasn't included in the home's purchase price, forcing a last-minute financial recalibration.

Florida's fast-paced markets present their own complexities. Commission structures vary widely agents in urban centers like Miami may offer flat fees, while those in smaller cities cling to traditional percentage-based models. This inconsistency, coupled with state-specific contract laws, can leave buyers feeling adrift in a sea of legalese. There's also a broader risk: if commissions fall too low, some agents may prioritize higher-paying clients, potentially reducing buyer access to competitive listings. As U.S. News explains, the new rules offer flexibility but don't guarantee savings or simplicity for every buyer.

These challenges highlight the need for education and tools that bridge the gap between policy changes and practical application. Without clear guidance, buyers risk making costly missteps in an already complex process.

Proptech: The Bridge to Clarity

Proptech is stepping into the breach, offering solutions that make the new rules accessible. In West Michigan, agencies are adopting AI-driven platforms that break down fees in real time, giving buyers a clear picture before they sign. A Grand Rapids brokerage reported a 20% increase in client retention after implementing a digital disclosure tool, proving that transparency fosters loyalty. In Holland, a buyer used a commission calculator to negotiate a 1% lower fee on a $300,000 home, saving thousands in a single conversation.

In Florida, where transaction volumes dwarf Michigan's, proptech is scaling up to meet demand. Apps now offer standardized agreement templates, allowing buyers to compare agent services as easily as they compare home listings. In Orlando, a proptech platform streamlined one buyer's contract review, cutting through dense legal jargon to deliver clear, actionable insights. For brokerages, the benefits are undeniable: those embracing technology are gaining a competitive edge in crowded markets, attracting buyers who value clarity and efficiency.

These tools are more than conveniences they're catalysts for change. By empowering buyers with data, proptech is leveling the playing field, turning opaque agreements into transparent choices. As one Miami broker put it, “The apps aren't just helping buyers they're forcing us to be better agents.”

The Future of Trust in Real Estate

As the NAR settlement's ripples continue to spread, one truth stands out: the days of blind trust in real estate are over. In Holland's tight-knit communities and Florida's bustling markets, buyers are demanding more more clarity, more control, and more value from their agents. Legal experts in both states predict that buyer-broker agreements will soon be as standard as mortgage contracts, a shift that will redefine the industry.

Proptech is leading the charge, transforming complex agreements into user-friendly tools that empower buyers. For those in Grand Rapids or Miami, this means smarter decisions backed by data. For agents, it's a call to embrace transparency as a competitive advantage. As a Michigan realtor summed it up, “The new rules aren't just about fees they're about giving buyers a voice.” In a market where every dollar counts, that voice is louder than ever, and it's shaping a future where trust is built on clarity, not assumptions.

Frequently Asked Questions

What changed with buyer-broker agreements after the NAR settlement in 2025?

The NAR settlement mandated that buyers must now sign explicit buyer-broker agreements that clearly outline their agent's fees upfront, rather than assuming the seller covers all costs. This marks a significant shift from the traditional model where a 5-6% commission was split between agents and embedded in the home's price. Buyers are now required to understand and agree to their agent's compensation before touring homes, creating a more transparent but also more complex process.

How can proptech tools help me negotiate realtor commissions?

Proptech platforms offer digital tools like commission calculators, side-by-side agreement comparisons, and AI-driven fee breakdowns that give buyers clarity before signing contracts. These apps help you compare agent services and fees across multiple brokerages, similar to how you'd shop for homes, and can empower you to negotiate better terms some buyers have saved thousands by using these tools to secure lower commission rates. In markets like Grand Rapids and Orlando, brokerages using these digital disclosure tools have seen increased client retention due to the transparency they provide.

Are buyer's agent fees still covered by the seller after the NAR settlement?

No, this is a common misconception that persists from the pre-settlement era. While sellers may still offer to pay buyer's agent commissions in some cases, buyers are now directly responsible for understanding and agreeing to their agent's fees through buyer-broker agreements. This means you need to budget for potential agent costs upfront and clarify payment terms before beginning your home search, as commission structures now vary widely from traditional percentage-based models to flat fees especially in states like Michigan and Florida.

Disclaimer: The above helpful resources content contains personal opinions and experiences. The information provided is for general knowledge and does not constitute professional advice.

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