The 2024 NAR settlement reshaped how buyer agent compensation works in real estate. Before the settlement, buyer agent commissions were baked into MLS listings — sellers offered a percentage (typically 2.5–3%) to the buyer's agent, and buyers rarely questioned it. Now, buyers must sign a written agreement with their agent before touring homes, and the commission amount is fully negotiable.
This is the biggest shift in residential real estate in decades. And it means one thing clearly: what you pay your buyer's agent is now your decision.
What Most Buyers Still Don't Realize
Even after the settlement, most traditional agents still charge 2.5% of the home's purchase price. On a $750,000 home, that's $18,750. On a $1.2 million home, that's $30,000. These fees come directly out of the transaction — money that could otherwise stay in your pocket or reduce your closing costs.
The NAR settlement opened the door for buyers to choose more affordable representation. But the industry hasn't exactly rushed to lower its prices. That's where flat-fee buyer agents come in.
How Flat-Fee Buyer Representation Works
Instead of charging a percentage of the home price, flat-fee brokerages like ShopProp charge a fixed amount regardless of what you buy. ShopProp's buyer fees start at $1,995 — and the difference between that flat fee and whatever the seller offers in compensation goes back to you as a rebate at closing.
Here's what that looks like in practice:
- $600,000 home: Traditional 2.5% = $15,000 → ShopProp $1,995 = $13,005 back at closing
- $750,000 home: Traditional 2.5% = $18,750 → ShopProp $3,995 = $14,755 back at closing
- $1,000,000 home: Traditional 2.5% = $25,000 → ShopProp $4,995 = $20,005 back at closing
- $1,500,000 home: Traditional 2.5% = $37,500 → ShopProp $4,995 = $32,505 back at closing
- $2,000,000+ home: Traditional 2.5% = $50,000+ → ShopProp $7,995 = $42,005+ back at closing
But Don't You Get Less Service?
This is the question every flat-fee skeptic asks — and it's a fair one. The answer depends entirely on who's behind the brokerage.
ShopProp is led by a managing broker with 19 years of experience and over 4,000 closed transactions across 8 states. A managing broker isn't just a sales agent — they're licensed to supervise other agents, review contracts, and ensure compliance. That's a higher standard of expertise than what most traditional agents offer.
ShopProp handles everything a full-service agent does: showing coordination, offer writing, negotiation, inspection management, and closing support. The only difference is the price — and the fact that you keep thousands more at closing.
Which States Allow Buyer Rebates?
Buyer rebates are legal in the vast majority of U.S. states. ShopProp currently operates in Arizona, California, Colorado, Hawaii, Michigan, Texas, Virginia, and Washington — covering some of the highest-value real estate markets in the country.
In states like California and Washington, where median home prices frequently exceed $700,000, the savings from a flat-fee buyer agent can easily reach $15,000–$40,000 per transaction.
The Bottom Line
The NAR settlement gave buyers the right to negotiate their agent's fee. But rights only matter if you exercise them. If your buyer's agent is still charging 2.5%, ask them why — or find one who charges a flat fee and returns the rest.
ShopProp's buyer representation starts at $1,995. Use our rebate calculator to see exactly how much you'd save on any home, in any of our 8 licensed states.
Rob Luecke Sr. is the managing broker of ShopProp, with 19 years of experience and over 4,000 closed transactions. ShopProp has been recognized by NPR, USA Today, and the New York Post for making real estate more affordable.