Mortgage Blog

The NAR Settlement Changes Everything: What Realtors and Loan Officers Must Explain to Buyers in 2026

January 25, 2026 | Posted by: Ashley Hall

The NAR Settlement Changes Everything: What Realtors and Loan Officers Must Explain to Buyers in 2026

If you are buying a home in 2026, the real estate process you heard about from friends a few years ago might not match what you experience today. One of the biggest reasons is the National Association of Realtors settlement and the practice changes that followed. The biggest shift is simple to say, but it has a lot of ripple effects.

Before many buyers tour a home, they are now expected to sign a written agreement with a buyer's agent.

That one change affects how buyers start the process, how they budget, how they negotiate, and how quickly a deal moves from "we like this house" to "we can actually buy this house."

This post is written for homebuyers, not industry insiders. The goal is to help you understand what changed, why it matters, and what your Realtor and loan officer should explain clearly before you start touring homes.

What Actually Changed, in Plain English

There are two practice changes you will hear about most.

• A written buyer agreement is required before touring, in many situations. If you are working with a buyer's agent and touring homes, the process now commonly includes signing an agreement up front that spells out the services and how the agent will be compensated.
• Offers of buyer agent compensation are no longer displayed in the MLS. Historically, many listings included a field showing what the seller was offering to the buyer's agent. The new approach removes that from the MLS system, which means compensation details are handled through negotiation and communication outside the MLS.

Important context, the settlement and related practice changes have been a major driver of these new norms across the country.

Why Buyers Feel the Impact More Than Anyone

For buyers, the old system often felt invisible. Many buyers did not think about buyer agent compensation at all, because it was typically built into the listing side of the transaction.

Now, buyers are being asked earlier to make decisions that used to happen later, including:

• Who will represent me?
• What services am I getting?
• How is my agent paid, and by whom?
• How does that payment affect my budget and cash to close?

This does not mean buyers suddenly have to pay thousands more out of pocket in every transaction. It does mean you need clarity up front, because unclear expectations can create stress, delays, and even failed negotiations.

The Biggest Misconception, "The Buyer Must Pay the Agent Now"

Not exactly.

What changed is not that buyers must always pay their agent out of pocket. What changed is that compensation is more openly negotiated and must be disclosed and agreed to clearly.

Depending on the home, the market, and the structure of the offer, compensation can be handled in different ways. That is why the best buyer experiences in 2026 start with a simple conversation that includes both the Realtor and the loan officer early.

What Your Realtor Must Explain Before You Tour

1) What the Buyer Agreement Is, and What It Is Not

A buyer agreement is a contract. It is meant to define:

• The services your agent will provide
• The time period it covers
• The compensation arrangement, including the amount or method
• The expectations on both sides

It is not automatically bad for a buyer. In fact, it can protect you by making sure you understand what you are getting and what you are not. But you should treat it like any other contract and ask questions before signing.

2) The Agreement Can Be Tailored

Many buyers assume it is all or nothing. In reality, agreements can often be structured in ways that fit your situation, such as:

• A shorter time period while you decide if it is the right fit
• A geographic area or property type focus
• Clear cancellation terms
• A compensation structure that is transparent and easy to understand

Your agent should be able to explain these terms without pressure. If they cannot, that is a signal to slow down.

3) Open Houses and Casual Conversations Are Different

Many buyers wonder, "Do I have to sign something just to walk into an open house?"

In general, simply attending an open house or having an introductory conversation is not the same as formally being represented. But the moment you start touring homes with an agent in a representative capacity, written terms typically come into play.

What Your Loan Officer Must Explain Before You Make an Offer

This is the part many buyers miss. Even if your Realtor explains everything perfectly, you also need your financing team to translate it into budget reality.

1) Cash to Close Is the Real-Life Pressure Point

In 2026, a smart buyer plan is not just "What is my monthly payment?" It is also "What do I need for cash to close?"

Your loan disclosures are designed to help you understand that number. Estimated cash to close includes your down payment and closing costs, plus adjustments, and can be reduced by credits depending on the structure of the deal.

If part of your transaction involves negotiated credits or other structures, your lender should help you understand how that impacts the final cash to close.

2) How Seller Credits Work, and the Fact That Limits Exist

Many buyers will ask, "Can the seller just cover it?"

Sometimes a seller can offer concessions or credits that reduce what you bring to closing. But loan program rules often cap how much interested parties, including sellers, can contribute toward certain costs. These caps vary by loan type, occupancy, and down payment structure.

Your lender should explain what is possible for your loan type, instead of letting you discover it at the last minute.

3) You Need a Strategy Before You Negotiate

Because compensation details are no longer displayed in the MLS, your Realtor may need more direct negotiation around how compensation and concessions are handled. Your loan officer should be part of that conversation early, so you do not negotiate a structure that creates an appraisal issue, a loan rule issue, or a cash to close surprise.

What Changes in the Buyer Experience, Step by Step

Step 1, Touring Now Often Starts With a Contract

In 2026, you might interview an agent and sign a buyer agreement earlier than you expected. That can feel uncomfortable if you are used to "let's just look first."

The fix is simple, do a short pre-tour meeting, even if it is 15 minutes, where your agent explains the agreement and your lender explains your budget guardrails.

Step 2, Your Offer Strategy Must Include Compensation Reality

In the past, many buyers never discussed agent compensation. Now, buyers may hear terms like:

• Seller credit
• Concessions
• Closing cost assistance
• Offer structure changes

This is not meant to confuse you. It is meant to be transparent. But transparency only helps if your team translates it into plain language.

Step 3, The Negotiation Can Feel More Personal

When compensation details are not baked into the MLS field, negotiation can feel more direct. That can be emotionally uncomfortable for buyers who already feel stretched.

Your Realtor's job is to keep it professional and focused on the full value of the transaction, not just one line item. Your loan officer's job is to keep the conversation anchored to affordability and approval.

Step 4, A Smoother Closing Depends on Early Alignment

The best closings in 2026 happen when:

• Buyer agreement terms are understood early
• The lender models realistic cash to close
• The offer structure aligns with loan rules
• Everyone communicates clearly, before it becomes urgent

What Buyers Should Do Differently in 2026

Here is the practical buyer checklist recommended for 2026.

• Get pre-approved before you fall in love with a house. A strong pre-approval gives you leverage and speed, and helps avoid budget surprises.
• Ask your Realtor to walk you through the buyer agreement, line by line. If you do not understand something, pause.
• Ask your loan officer for two numbers, comfortable monthly payment and comfortable cash to close. Then build your home search around both.
• Have your Realtor and loan officer talk before you write an offer. It saves time and prevents avoidable friction.
• Do not assume concessions or credits will solve everything. They can help, but they are not unlimited and they must fit your loan program.

A Realistic Scenario You Might Face in 2026

Imagine this common situation.

You are a first-time buyer. You meet an agent at an open house. You like them. The next day they offer to show you three homes, but they ask you to sign a buyer agreement before touring.

You sign quickly because you want to keep momentum. Then you find a home you love. When you write an offer, you learn that compensation is not displayed in the MLS the way it used to be, so the negotiation includes more discussion about how costs are handled.

Now you are stressed because you do not know what it means for cash to close.

This is where a good loan officer changes the entire experience. If your lender has already explained cash to close and how seller credits work on your loan type, the conversation becomes calm and practical, not emotional.

That is the real takeaway. The settlement changed the order of events, so buyers need financing clarity earlier.

What to Watch Out For, Without the Drama

There are a few red flags buyers should be aware of, not because every agent is doing something wrong, but because you should protect yourself in any major purchase.

• Pressure to sign without explanation
• Vague language about compensation
• No clear cancellation or time period terms
• A team that does not coordinate Realtor and lender communication
• Promises that a seller will definitely cover certain costs

No one can guarantee negotiations. A trustworthy professional helps you understand options, tradeoffs, and realistic outcomes.

The Bottom Line for Buyers in 2026

The NAR settlement did not make buying a home impossible. It made the process more transparent, and it moved important conversations earlier.

If you want a smoother experience, ask for two things up front:

• A clear explanation of your buyer agreement and representation
• A clear financing plan that covers both monthly payment and cash to close

When your Realtor and loan officer work together early, the new process becomes simpler, not harder.

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