The NAR Settlement: A Complete Guide for Tennessee Home Buyers | BuyUnrepped

In August 2024, the real estate industry changed in a way that most buyers still don't fully understand. The National Association of Realtors settled a series of antitrust lawsuits for $418 million and agreed to rules that fundamentally altered how buyer's agent commissions work in every state, including Tennessee.¹

The short version: buyer's agent compensation is no longer advertised on the MLS, buyers must now sign written agreements disclosing agent fees before touring homes with an agent, and the long-standing practice of sellers automatically funding a buyer's agent from the sale proceeds is gone. Whether your agent gets paid, how much, and who pays, is now a negotiated item in every transaction.

For Tennessee buyers, the implications go further than the national story. Tennessee is one of only 10 states where commission rebates are illegal, which means the traditional commission structure has always been more rigid here than in most of the country.² The NAR settlement cracked it open. This guide explains exactly what changed, what it means for you, and how to use the new rules to your advantage.

What the NAR Settlement Actually Was

The lawsuit that produced the settlement, Sitzer/Burnett v. NAR, centered on a specific allegation: that NAR's rules required sellers to offer buyer's agent compensation as a condition of MLS listing access, and that those rules artificially inflated and maintained commission rates that would have been competed down in a truly open market.¹

A Missouri jury agreed in October 2023, awarding $1.78 billion in damages (automatically tripled under antitrust law to $5.36 billion). NAR settled before the appeals process concluded, agreeing to:

Pay $418 million over four years
Eliminate the requirement that sellers offer buyer's agent compensation on the MLS
Require written buyer representation agreements before agents show homes to buyers

The settlement applied nationally. New practices took effect August 17, 2024.³

What Actually Changed After August 2024

The MLS Offer of Compensation Is Gone

Before the settlement, sellers listed their home on the MLS and simultaneously advertised how much they were willing to pay the buyer's agent. The buyer's agent commission offer was baked into the listing and visible to every agent searching the MLS.

That practice ended in August 2024. Sellers can still choose to offer buyer's agent compensation. Many do, because a home that buyers can tour without paying out of pocket is a more attractive listing. But the offer is now negotiated separately, not embedded in the MLS listing as a structural assumption.³

Written Buyer Agreements Are Now Required

Before showing you homes, any NAR member agent must now have a written buyer representation agreement with you that specifies the agent's compensation: how much they'll earn, in what form, and under what conditions.³

This is a significant transparency improvement. Before the settlement, many buyers had no clear understanding of what their agent was earning or that they had any say in it. The agreement requirement forces the conversation to happen before you're emotionally invested in a particular home.

What the agreement means for you:

You know exactly what the agent expects to be paid
You're agreeing to those terms before you start touring homes
If the seller doesn't offer enough to cover the agent's fee, you may be responsible for the difference
You have the right to negotiate the fee, or to decline and find an agent with different terms

Sellers Can Still Offer Buyer's Agent Compensation

The settlement did not eliminate seller-paid buyer's agent commissions. It eliminated the MLS requirement to offer them. Sellers who want to attract the widest buyer pool often still offer to cover the buyer's agent fee, because it reduces the out-of-pocket cost for buyers and increases demand for their listing.

In Tennessee's current market, many sellers still offer buyer's agent compensation. But the amount is more variable, and it's negotiable in a way it wasn't before.⁴

For a deeper look at what changed specifically, see our post on 8 things that changed for home buyers after the NAR settlement.

What the Settlement Means for Tennessee Buyers Specifically

Tennessee's No-Rebate Law Changes the Calculus

In most states, one response to the NAR settlement has been the growth of "rebate agents," buyer's agents who compete by agreeing to kick back part of their commission to the buyer at closing. This model gives buyers more flexibility: hire an agent and still recover some of the cost.

Tennessee is one of 10 states where this is illegal.² Tennessee Code Annotated prohibits real estate licensees from sharing fees with unlicensed parties, which courts and regulators have interpreted to prohibit buyer rebates. The Tennessee Real Estate Commission has not moved to change this position.

What this means in practice: in Tennessee, the choices remain full-commission representation or no representation. There is no rebate middle ground. The NAR settlement made the commission visible and negotiable, but it didn't create a rebate option that doesn't legally exist.

Commissions Are Negotiable, But You Have to Ask

Tennessee commission rates have historically run higher than the national average, with buyer's agent commissions typically ranging from 2.42% to 2.92% depending on market and price point.⁵ The settlement didn't mandate lower rates, but it created an environment where negotiation is more expected.

Buyers who sign buyer representation agreements without asking about the fee, or without comparing multiple agents, are leaving money on the table. The settlement created the expectation that the fee is discussed. Use it.

Practical approaches:

Ask the agent directly what they charge and whether it's negotiable
Ask whether the listing you're interested in offers buyer's agent compensation and in what amount
If the seller's offer is less than the agent's fee, ask who pays the difference and how
Compare fees across multiple agents before committing

You Can Now Choose to Be Unrepresented More Cleanly

Before the settlement, the standard transaction structure made it awkward to decline buyer's agent representation, because the seller was advertising compensation that could only be captured by a buyer's agent. That structural incentive is gone.

Unrepresented buyers now operate in a cleaner framework. You're not leaving money "on the table" that the seller set aside for a buyer's agent, because there's no publicly advertised fund earmarked for that purpose. Some sellers will still offer it. You can ask whether they're offering buyer's agent compensation and request that any unapplied amount be redirected as a closing cost credit.

For a complete look at whether you need a buyer's agent at all, see our post on do you still need a buyer's agent after the NAR settlement.

Understanding the New Buyer Representation Agreement

If you work with an agent, you'll now sign a written buyer representation agreement before touring homes. Here's what to look for.

What Should Be in the Agreement

A compliant buyer representation agreement should specify:

The agent's compensation rate or amount
How compensation will be paid (by the seller, by you, or some combination)
What happens if the seller doesn't offer enough to cover the agreed fee
The duration of the agreement
The geographic scope (does it cover all of Tennessee or just certain counties?)
Termination provisions

What to Watch Out For

Automatic renewal clauses: Some agreements auto-renew. Look for a clear end date.
Exclusivity provisions: Most agreements are exclusive, meaning you can only work with one agent. If you decide you no longer want representation, understand how to terminate.
Compensation above seller's offer: If the agreement says the agent earns 3% but the seller offers 2.5%, some agreements make you responsible for the 0.5% difference. Know this before you sign.
Vague compensation language: "Competitive compensation" is not a specific amount. Push for a specific percentage or dollar figure.

For a thorough breakdown of the agreement itself, see our post on buyer-broker agreements explained.

You Don't Have to Sign

If an agent presents you with a buyer representation agreement and you're not comfortable with the terms, you can decline, negotiate different terms, or find a different agent. The requirement to have a written agreement runs to the agent's obligation under NAR rules. Your obligation is to decide whether you want representation and on what terms.

Attending open houses does not require signing a buyer representation agreement. Open houses are public events. You can visit freely without committing to any agent relationship.

How the Settlement Affects Commission Rates in Practice

The commission data since the settlement took effect suggests that rates have declined modestly but not dramatically. The average buyer's agent commission in Q3 2025 was approximately 2.42%, down from 2.58% pre-settlement nationally.⁵ In Tennessee, rates remain at the higher end of national averages.

Tennessee Market	Median Home Price	2.42% Commission	2.92% Commission
Franklin/Brentwood	~$720,000	$17,424	$21,024
Nashville	~$479,945	$11,614	$14,014
Knoxville	~$301,000	$7,284	$8,789
Chattanooga	~$310,000	$7,502	$9,052
Memphis	~$190,000	$4,598	$5,548
Tennessee Median	~$365,000	$8,833	$10,658

These numbers are why the settlement matters. Even a decline from 2.92% to 2.42% saves $1,460 on a median Tennessee purchase. Eliminating the commission entirely saves $8,833–$17,424 depending on where you're buying.

What Hasn't Changed

The settlement changed the compensation structure. It didn't change anything else about the home buying process.

Tennessee disclosure requirements are unchanged
Purchase agreement requirements are unchanged
The closing process is unchanged
Tennessee's ban on commission rebates is unchanged
The need for a real estate attorney (especially for unrepresented buyers) is unchanged
Inspection contingencies, financing contingencies, and appraisal contingencies are all unchanged

For a detailed breakdown of what changed post-settlement and what didn't, see our post on what the NAR settlement actually means for home buyers in 2026.

How to Use the New Rules to Your Advantage

If You're Working With an Agent

Before signing anything, ask for the agent's compensation in writing and as a specific percentage or dollar amount.
Compare at least two or three agents. Rates are now expected to be discussed. Agents who refuse to discuss it are a red flag.
Before making an offer, confirm whether the seller is offering buyer's agent compensation and in what amount.
Negotiate any gap between what the seller offers and what your agent charges. Either the agent adjusts, the seller is asked to increase the offer, or you pay the difference. Know which outcome is expected before you're under contract.

If You're Going Unrepresented

When you contact a listing agent for a showing, ask whether the seller is offering buyer's agent compensation.
If the seller is offering compensation, ask whether an unrepresented buyer can receive that amount as a closing cost credit. Some sellers and listing agents will agree; others won't. It's worth asking.
Hire a real estate attorney to review your purchase agreement and represent you at closing. The cost ($750–$1,500) is a fraction of the buyer's agent commission you're not paying.
Use a flat-fee service to fill the gap between fully solo and full-commission representation.

For the full playbook on buying without a buyer's agent in Tennessee, see our complete guide to buying a home without a buyer's agent.

How BuyUnrepped Helps in the Post-Settlement Market

The NAR settlement created the transparency that was missing. Buyers can now see what representation costs and make an informed choice. BuyUnrepped exists for the buyers who look at that number and choose differently.

What BuyUnrepped provides in the post-settlement environment:

Tennessee-specific purchase agreements so you're protected from contract to closing without a full-commission agent
Comparable sales data to replace the CMA a buyer's agent would provide
Closing cost calculators built for Tennessee's specific tax structure
Step-by-step closing coordination so nothing falls through the cracks
Flat-fee pricing: one transparent cost, no percentage of your purchase price

The settlement gave you the right to see what you're paying for representation. It also made the alternative, going with a flat-fee service instead of a full-commission agent, a mainstream option rather than an unusual choice.

See how much you'd save on your purchase or review our pricing to get started. Questions? Reach out to our team.

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