If you're planning to sell your San Diego home in 2025, you're entering a fundamentally different real estate market than existed just months ago. The National Association of Realtors settlement-finalized in August 2024 and now in full effect-has rewritten the rules for how buyer agents get paid, who negotiates their compensation, and what sellers are responsible for disclosing.
For homeowners in North Park, La Jolla, Chula Vista, and across San Diego County, these changes create new layers of complexity in what's already a high-stakes transaction. The median San Diego home now sells for around $900,000, making commission negotiations a conversation about tens of thousands of dollars.
But here's what many sellers don't yet realize: while the settlement adds complexity to traditional sales, it simultaneously makes cash offers more appealing than ever. This article breaks down exactly what changed, how it affects you as a San Diego seller, and why direct cash sales now offer a cleaner path to closing.
TL;DR: NAR Settlement Impact on San Diego Sellers
The 2024 NAR settlement eliminated mandatory buyer agent commission advertising on MLS listings, shifting commission negotiations to individual buyer-agent agreements. For San Diego sellers, this adds complexity to traditional sales: offers now require negotiating $20,000-$25,000 buyer agent fees on top of price. Cash offers bypass this entirely-no buyer agents means no commission negotiations, faster closes (7-14 days vs 60-90 days), and net proceeds often within $10,000-$30,000 of traditional sales after accounting for repairs and carrying costs.
Quick Facts: San Diego Home Sales in 2025
- Median San Diego home price: $900,000 (Zillow)
- Typical buyer agent commission: 2.5% ($22,500 on median home)
- NAR settlement effective date: August 2024
- Traditional sale timeline: 60-90 days
- Cash sale timeline: 7-14 days
- Cash offer range: 5-15% below retail (often similar net proceeds after costs)
- San Diego inventory level: Below 2-month supply (Redfin)
What Actually Changed with the NAR Settlement
The NAR settlement stems from antitrust lawsuits alleging that the real estate industry's traditional commission structure inflated costs for home sellers. Before the settlement, it was standard practice for sellers to pay a total commission-typically 5-6%-that was split between the listing agent and the buyer's agent. The listing agreement would specify the buyer agent's compensation upfront, and that figure would appear in the Multiple Listing Service (MLS) for all buyer agents to see.
Now, that's prohibited. The settlement, which took effect in mid-2024, requires buyer agents to negotiate their compensation directly with their clients through a written agreement before even showing homes. Sellers can still choose to offer buyer agent compensation, but it can't be advertised on the MLS. This seemingly technical change has massive practical implications.
For San Diego sellers, this means you're no longer automatically on the hook for both sides of the commission. But it also means buyers and their agents now enter the transaction with their own separate compensation arrangement-and that arrangement might affect how your sale unfolds. If a buyer has already agreed to pay their agent 2.5% but wants you to cover it as a seller concession, you're suddenly negotiating not just price but commission structures during the offer process.
The California Association of Realtors has updated all standard forms to comply with the settlement, but the practical impact is still unfolding. Many San Diego buyers don't yet understand they're now responsible for their agent's commission unless they negotiate otherwise. This confusion creates friction, delays, and uncertainty in traditional sales-friction that doesn't exist in direct cash transactions.
How This Impacts San Diego Home Sellers Specifically
San Diego's high median home price amplifies the settlement's impact. On a $900,000 home, a 2.5% buyer agent commission equals $22,500. That's not a rounding error-it's a material part of the transaction that now requires explicit negotiation.
In practice, here's what San Diego sellers are experiencing:
First, offers are becoming more complicated. You might receive an offer at $920,000 with a request that you credit $20,000 toward the buyer's agent commission. Is that really better than a $900,000 offer with no concessions? You'll need to calculate net proceeds carefully, and these calculations now happen during the heat of negotiation rather than being baked into the listing upfront.
Second, buyers financed through conventional mortgages face new complications. Lenders have specific rules about seller concessions, and there are limits on how much of the buyer agent commission can be rolled into the loan. This creates scenarios where buyers you thought were qualified suddenly can't structure the deal in a way that works for both parties. Deals that would've closed smoothly six months ago now fall apart over commission structuring.
Third, timing has gotten less predictable. The old system was standardized-everyone knew how commissions worked, and it rarely caused delays. Now, every transaction involves custom negotiation around buyer agent compensation. Even when parties agree in principle, the paperwork and coordination add days or weeks to the process.
For sellers in hot San Diego neighborhoods like Del Mar or Carlsbad, where you might receive multiple offers, comparing them has gotten genuinely complex. One buyer offers full price but wants you to pay their agent. Another offers slightly less with no concessions. A third comes in high but their agent's commission structure creates appraisal concerns. You're not just picking the highest number anymore-you're evaluating transaction structures.
And if your home needs work, sits in a challenging location, or faces any complicating factors (tenant-occupied, probate, divorce sale), traditional buyers become even more hesitant. They're already navigating new commission complexity; adding property complications can make them walk away entirely.
Why Cash Offers Bypass NAR Settlement Complexity
Here's the elegant simplicity of a cash offer in this new landscape: there's no buyer agent commission to negotiate because there's no buyer agent.
Cash buyers-whether individual investors or companies like San Diego Fast Cash Home Buyer-typically don't work through buyer's agents. They evaluate properties directly, make offers based on their own analysis, and close without the layers of representation that trigger commission negotiations. This isn't a workaround or loophole; it's simply a different transaction structure that's always existed but has become more attractive given the settlement's impact.
When you accept a cash offer, you're dealing with a single entity who has the funds ready to close. There's no lender to satisfy, no appraisal requirement, no buyer agent seeking compensation, and no inspection contingencies that could reopen price negotiations. The offer you receive is the offer you close with-usually within 7-14 days.
This simplicity has always been valuable for San Diego sellers facing time pressure (relocation, divorce, financial distress), but the NAR settlement has made it appealing to a broader group. Even sellers who aren't in crisis situations are now weighing whether the potential of a slightly higher traditional sale price is worth the new complexity, timeline uncertainty, and negotiation overhead.
Consider a scenario: You list your Scripps Ranch home for $950,000. You receive an offer at $945,000 from a financed buyer whose agent is requesting $24,000 in compensation (2.54%). After you pay your listing agent 2.5% ($23,625), your net is roughly $897,375 before closing costs. Now compare that to a cash offer at $880,000 with zero commissions, zero repairs, and a 10-day close. Your net is $880,000 minus minimal closing costs-call it $875,000. That's a $22,000 difference, but you're closing in a week and a half instead of 45-60 days, with absolute certainty instead of financing contingencies, inspection negotiations, and potential buyer cold feet.
For many San Diego sellers, especially those who value certainty and speed, that tradeoff now makes sense in a way it didn't before the settlement added complexity to traditional sales.
Comparing Traditional Sales vs Cash Sales in the New Reality
Let's break down the practical differences between selling traditionally and selling for cash in 2025 San Diego:
Traditional Sale Timeline:
- List property (1-2 weeks for prep, photos, staging)
- Market property and show to buyers (1-4 weeks)
- Review offers and negotiate commission structures (3-7 days)
- Enter escrow with inspection contingency (10-17 days)
- Navigate repair negotiations after inspection (3-7 days)
- Wait for buyer's appraisal (7-14 days)
- Clear lender conditions (5-10 days)
- Close escrow (typically 30-45 days from accepted offer)
- Total: 60-90 days minimum, often longer if complications arise
Cash Sale Timeline:
- Contact cash buyer (same day)
- Property evaluation (24-48 hours)
- Receive written offer (24-48 hours)
- Accept offer and open escrow (1-2 days)
- Title work and final walkthrough (5-10 days)
- Close and receive funds (7-14 days total)
- Total: 7-14 days from first contact to closing
Cost Comparison on a $900,000 San Diego Home:
Traditional Sale:
- Listing agent commission (2.5%): $22,500
- Buyer agent commission (2.5%, if you cover): $22,500
- Pre-sale repairs and improvements: $5,000-$15,000+
- Staging costs: $2,000-$5,000
- Carrying costs during 60-90 day sale: $4,000-$6,000
- Total costs: $56,000-$71,000
- Net proceeds: $829,000-$844,000
Cash Sale:
- No agent commissions: $0
- No repairs (sold as-is): $0
- No staging: $0
- Minimal carrying costs (7-14 day close): $500-$1,000
- Cash offer might be 5-10% below retail: $45,000-$90,000
- Offer price: $810,000-$855,000
- Total costs: $500-$1,000
- Net proceeds: $809,000-$854,500
Depending on your specific situation-how much work your home needs, how quickly you need to close, and what cash offer you receive-the net proceeds can be surprisingly close. And that's before you factor in the certainty, simplicity, and time savings.
The NAR settlement doesn't change the cash sale process at all, but it does make the traditional sale process measurably more complex and uncertain. That shifts the value equation for many sellers.
San Diego Market Context: Why This Matters Now
San Diego's real estate market has unique characteristics that make the NAR settlement's impact particularly significant here.
First, our high median prices mean commission dollars are substantial. In markets where homes sell for $300,000, a 2.5% commission is $7,500-significant but manageable. In San Diego, where the median is $900,000 and many neighborhoods in Encinitas, Point Loma, or La Jolla see prices well over $1 million, we're talking about $25,000-$40,000 in buyer agent compensation alone. These aren't small numbers to negotiate during an offer process.
Second, San Diego's persistent inventory shortage (we've been below a 2-month supply for years) means most move-in ready homes still sell quickly with multiple offers. But homes that need work, carry tenant complications, are in probate, or face other challenges don't benefit from the hot market the same way. For these properties, the added complexity of negotiating buyer agent compensation on top of existing complications makes traditional sales even harder. Cash buyers specifically target these situations.
Third, California's regulatory environment adds layers that don't exist in other states. We have mandatory disclosure requirements, specific rules about seller concessions in financed transactions, and unique title and escrow practices. The NAR settlement's requirement for separate buyer agent agreements adds another California-specific compliance layer that escrow companies and agents are still adapting to.
Finally, San Diego's high cost of living means many homeowners are financially stretched. According to recent data, many San Diego homeowners are house-rich but cash-poor, with substantial equity but limited liquid savings. For these sellers, a 60-90 day timeline with financing contingencies and potential deal collapse isn't just inconvenient-it's financially risky. They can't afford to take the home off market for two months only to have the buyer back out over commission disputes or inspection issues.
The combination of high prices, low inventory for complicated properties, complex regulations, and financially stretched sellers makes San Diego a market where the NAR settlement's impact is amplified-and where cash offers' simplicity is especially valuable.
Frequently Asked Questions
Do I still have to pay the buyer's agent commission after the NAR settlement?
No, you're not required to pay the buyer's agent commission anymore. The settlement eliminated the practice of advertising buyer agent compensation on the MLS and making it a standard part of listing agreements. However, buyers may request that you cover their agent's commission as a seller concession during negotiations. You can agree, decline, or counter with a different arrangement. In a cash sale with no buyer's agent involved, this issue disappears entirely.
How much lower are cash offers compared to traditional sale prices in San Diego?
Cash offers typically range from 5-15% below retail market value, but the actual net proceeds are often closer than you'd think once you account for commissions, repairs, carrying costs, and the certainty of closing. On a $900,000 San Diego home, a cash offer might come in at $810,000-$855,000. After deducting 5% in total commissions ($45,000) and $10,000-$20,000 in repairs and carrying costs from a traditional sale, your net proceeds are often within $10,000-$30,000-and you close in 7-14 days instead of 60-90 days with no risk of the deal falling through.
Can I avoid real estate agents entirely by accepting a cash offer?
Yes. When you sell directly to a cash buyer, you're not required to hire a listing agent. The cash buyer handles the transaction directly with you, working through a title company or real estate attorney to ensure proper documentation and legal transfer. You save the 2.5-3% listing commission and avoid all the marketing, showing, and negotiation overhead. Many San Diego homeowners choose this route when they need speed, certainty, or want to sell a property as-is without repairs.
What happens if a buyer can't afford their agent's commission under the new rules?
This is becoming a real issue in expensive markets like San Diego. If a buyer signed an agreement to pay their agent 2.5% ($22,500 on a $900,000 home) but doesn't have that cash available, they'll typically request you cover it as a seller concession. But there are limits on how much can be rolled into their mortgage, and some lenders restrict seller concessions. If the numbers don't work, the deal can fall apart-even after you've taken your home off market and invested weeks in the process. This financing risk doesn't exist with cash buyers who don't use agents or lenders.
Are cash home buyers legitimate, or is this a scam?
Legitimate cash home buyers are real businesses that have been operating for decades, long before the NAR settlement. They purchase properties as investments, often to renovate and resell or rent. Reputable cash buyers like San Diego Fast Cash Home Buyer are licensed, work with established title companies, provide proof of funds, and close through normal escrow processes-just faster. Warning signs of scams include requests for upfront fees, pressure to sign before you understand terms, or reluctance to use licensed title/escrow companies. Always verify credentials, get everything in writing, and use a reputable escrow company.
Should I try listing traditionally first before considering a cash offer?
It depends on your timeline, your property's condition, and your tolerance for complexity. If your home is move-in ready, you're not in a rush, and you're comfortable navigating the new commission negotiation landscape, listing traditionally might net you a higher sale price. But if you need to close quickly (inheritance, divorce, relocation, financial distress), your property needs significant repairs, or you want to avoid the uncertainty and hassle of traditional sales in this new regulatory environment, a cash offer provides guaranteed certainty. You can always request a cash offer to establish your baseline, then decide whether listing is worth the additional time, cost, and complexity.
Conclusion
The NAR settlement has fundamentally changed how San Diego home sales work. Buyer agent commissions are no longer a standard, predictable part of the transaction-they're now a negotiation point that adds complexity, uncertainty, and potential friction to every deal.
For sellers with move-in ready homes in desirable areas and plenty of time, navigating this new landscape might still yield top dollar. But for the many San Diego homeowners who need speed, certainty, or want to sell as-is without repairs and staging, cash offers have become a genuinely compelling alternative.
The settlement didn't create cash buyers, but it did make their value proposition significantly stronger. If you're selling a San Diego home in 2025, you owe it to yourself to understand both paths-and get a cash offer in hand before making your decision.
Contact San Diego Fast Cash Home Buyer today for a no-obligation cash offer. We'll evaluate your property, provide a written offer within 48 hours, and close in as little as 7 days-no agents, no commissions, no complexity. Just a straightforward transaction that puts cash in your hands fast.
This article is for informational purposes only and does not constitute legal or financial advice. Consult with qualified professionals regarding your specific situation.