2 Key Changes in Real Estate Commission and Buyer Rules
Real estate agents across the country are playing by new rules that split apart a 100-year-old commission playbook. In a seismic change brought on by a landmark court settlement, home sellers are no longer responsible for paying both their own agent and the buyer’s agent.
Put simply, the traditional 5%-6% commission fee structure for agents has gone away. While the playing field may be a bit wobbly at first, experts believe buyers and sellers will benefit from the shakeup through lower Realtor fees and more innovative options.
If you’re shopping for a home, you and your buyer’s agent will be the first to experience the impact of this shift. One major change you’ll notice right away is that your Realtor won’t show you a house with just hope and a handshake. You’ll need to sign some form of an agreement upfront.
Why agent commission rules changed
In late 2023, following a series of lawsuits, a federal court determined that the long-established commission structure and mandates used by the National Association of Realtors (NAR) infringed upon antitrust laws. The old model essentially forced home sellers to pay a fee that could be paid by the buyer.
In March 2024, as part of a $418 million settlement, the NAR agreed to overhaul its rules, including decoupling seller and buyer agent compensations. The settlement put an end to mandatory commission fees and changed how listings are handled.
NAR President Kevin Sears described the new real estate commission rules and regulations as part of the evolution of the industry. “These changes help to further empower consumers with clarity and choice when buying and selling a home,” Sears said in a statement.
