Many of my clients have questions about the changes regarding RE commissions since NAR agreed to a settlement. Other buyers have not heard about the changes. I've seen little impact on commissions offered by sellers. There is additional paperwork provided to sellers and buyers that clarifies who is responsible for providing commission and no commission can be displayed in the MLS.
The New Era of Real Estate Commissions?
Recent legal battles have brought a major shake-up to the way U.S. real estate agents get paid. The changes stem from a $418 million settlement the National Association of Realtors (NAR) reached in March 2024, which officially took effect August 17, 2024. The heart of the dispute? Rules that had long kept commissions locked into a certain structure, making it harder for buyers and sellers to negotiate.
1. Sellers Are No Longer Required to Pay Buyer-Agent Commissions
Before, most home sales listed on the Multiple Listing Service (MLS) automatically built in a payment from the seller to the buyer’s agent. Now, that practice is optional. Sellers can still offer to cover that cost, but any such offer has to be made outside the MLS system.
2. Buyer Contracts Are Now Mandatory
If you’re a homebuyer, you’ll need to sign a written agreement with your agent before they can start showing you properties. That document spells out exactly how the agent will be paid and what services you’re getting—bringing more transparency but also requiring buyers to commit early in the process.
3. Commission Amounts Are No Longer Posted on MLS
MLS platforms can’t display the buyer-agent fee anymore. The idea is to prevent “steering,” where agents might prioritize showing homes that offered them higher payouts. Discussions about fees now happen privately between the parties.
4. Commission Rates Haven’t Fallen Much
Many industry watchers expected fees to drop sharply once these rules changed—maybe by a quarter or even half. Instead, average commission percentages have mostly held steady into 2025, with some lower-priced markets even seeing slight increases.
5. Agents Are Adapting Business Models
Some agents are leaning into “value-add” services like staging, premium marketing, and tough negotiation to justify their fees. Others are experimenting with flat-rate pricing or tiered packages. In many cases, sellers are still covering buyer-agent costs, but the decision is now more open to negotiation.
