What the Recent Commission Settlement Means for You—And Why You Might Not Feel It Yet
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Almost a year ago, a major legal settlement was expected to reshape how real estate commissions work—and potentially save buyers and sellers a lot of money. But so far, those savings haven’t materialized.
Here’s what happened:
A group of home sellers sued the National Association of Realtors (NAR), claiming that the way agents coordinated commission rates through the Multiple Listing Service (MLS) drove up housing costs. A jury agreed, and the NAR settled the case for $418 million. One of the biggest changes? Agents can no longer list commission offers on the MLS—a move that was supposed to challenge the long-standing 5%–6% total commission model in the U.S. (compared to 1%–3% in many other countries).
Industry experts predicted a drop of up to 30% in the $100 billion Americans spend annually on real estate commissions. But since the rule change took effect in August, change has been slow:
- Agents found workarounds. With commission talks banned only on MLS listings, many agents simply moved those conversations to calls, texts, or emails.
- Commission rates haven’t moved much. Redfin reports that buyer-agent fees have declined less than 0.1% year-over-year—just $415 on a $415,000 home.
- Lower fees remain hard to negotiate. Many buyers and sellers say they’ve been discouraged or even excluded when trying to negotiate lower commission rates or go without an agent.
Why is change taking so long? In today’s tight housing market, many buyers still need an agent to compete, and listing agents often prefer working with professionals on both sides of the deal.
What does this mean for you?
While this legal shift could lead to greater flexibility and savings in the future, we’re not there yet. If you’re buying or selling soon, it’s still important to work with a knowledgeable agent who can guide you through the current landscape—and help you explore your options when it comes to commissions.
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