How the NAR Settlement Is Shaking Up Chicago Real Estate: The Full 2025 Story

The Biggest News Jason Rosenberg
Apr 10
4 min read

If you thought Chicago’s real estate market was wild before—just wait. Thanks to the recent $418 m Shaking Up Chicago Real Estate: The Full 2025 Story

illion settlement by the National Association of Realtors (NAR), the industry has been flipped on its head like a Wrigleyville tailgate table. This isn’t just another boring legal change. This is a paradigm shift that affects how we buy, sell, and negotiate homes in every Chicago neighborhood—from Lincoln Park to Logan Square and beyond.

Let’s break it all down—with insight, clarity, and maybe a little humor (because hey, it's real estate).

What Actually Happened?

In March 2024, NAR agreed to a landmark settlement in response to multiple class-action lawsuits that challenged long-standing practices in the real estate industry—namely the way buyer’s agents were compensated. Critics argued that requiring sellers to offer commissions to buyer’s agents via the MLS created an artificial floor on fees and inflated costs for sellers.

Rather than admit wrongdoing, NAR agreed to pay out nearly half a billion dollars and adopt new rules that officially took effect August 17, 2024.

The End of Commission Offers on the MLS

Previously, seller’s agents could offer compensation to buyer’s agents directly through the MLS. That’s now gone.

Today, those compensation offers must be discussed and negotiated outside of the MLS platform. In Chicago, this means listing agents must now communicate compensation details through private channels, emails, or direct agent-to-agent negotiation.

So what does that mean for buyers? Buyer’s agents might only show properties where they know they’ll get paid. As a buyer, you now need to talk about your agent’s fees before you even tour that dreamy South Loop loft.

Mandatory Written Agreements for Buyers

No more window shopping with agents on handshake deals. Under the new NAR rules, buyer’s agents are required to have signed agreements in place before they can show you homes.

This forces a conversation about:

How much the buyer's agent is charging
Who is responsible for paying that fee (the buyer, seller, or both)
What services the agent is actually providing

It’s like a prenup for your property search. Awkward? Maybe. Necessary? Absolutely.

Total Transparency on Commissions

Transparency is the name of the game now. Every party in a real estate deal must clearly understand who is paying whom—and how much.

This shift is huge. In a city like Chicago, where property values can swing wildly from block to block, it puts more power in the hands of informed buyers and sellers who can now negotiate commission rates more openly.

Expect more listing agents to emphasize value over percentage—and more creative pricing strategies like flat-fee or 1% commission models (shameless plug: I offer this!).

What’s Happening in Chicago Right Now?

Buyers Are Getting Cold Feet

Real-time data shows that 15% of pending home sales in Chicago were canceled in January 2025, up from 13% the year before. Factors like stubbornly high mortgage rates, low inventory, and the new commission rules are making some buyers more hesitant than ever.

Pocket Listings Are on the Rise

With commission offers no longer displayed on the MLS, brokerages like Compass are pushing "private exclusives"—a.k.a. pocket listings. These are homes marketed off-MLS to a select few, making access more limited.

Zillow and Redfin might look a little emptier in the coming months, which means if you're house hunting in Chicago, working with a well-connected agent is more important than ever.

Sellers Are Being Strategic (or Confused)

Some sellers are opting not to offer buyer-agent compensation at all, hoping to save a few bucks. But others are still offering a standard 2-2.5%—just now doing it off the grid.

There’s confusion out there. A lot of it. And where there’s confusion, there’s also opportunity for savvy agents and clients who understand the new rules.

What Does This Mean Going Forward?

Here’s what Chicago buyers and sellers should be doing:

For Sellers:

Be strategic about buyer agent compensation. Offering nothing might hurt your exposure, especially in neighborhoods like Avondale or Bridgeport where competition is tight.
Emphasize value. Partner with agents who offer creative commission models or added exposure (like professional photography, social media marketing, and MLS syndication).

For Buyers:

Be prepared to negotiate your agent's fee upfront—and potentially budget for it.
Get your agreement in writing and know what you’re getting for your money.
Ask your agent if they have access to pocket listings, which are becoming more common in Chicago’s competitive neighborhoods.

Final Thoughts

Chicago real estate is no stranger to change, but the NAR settlement is one of the biggest shifts we’ve ever seen. It’s democratizing the process, leveling the playing field, and putting negotiation power back into the hands of the people.

Whether you’re selling a Bucktown two-flat or buying a Roscoe Village fixer-upper, understanding these changes will give you a huge advantage.

If all this seems overwhelming—don’t sweat it. I’m Jason Rosenberg, and I’ve been guiding Chicago buyers and sellers through changing markets for over 23 years. With commission flexibility, transparent pricing, and creative marketing strategies, I’ll help you navigate this new landscape like a pro.