S
emih Ayhan, a second-time homebuyer, decided to navigate his latest property search without a real estate agent. His decision was motivated by his first experience over a decade ago, which he felt lacked transparency. "The transparency of that process, I think it's a problem," Ayhan said.

    A landmark legal settlement with the National Association of Realtors (NAR) aimed to increase transparency and competition in the industry. The settlement required agents to negotiate their rates separately with clients, rather than sharing a traditional 5-6% commission. National forecasters predicted commissions would plummet, potentially forcing over half of all realtors to leave the industry.

    However, hundreds of agents in the Twin Cities area painted a different picture. In an exclusive questionnaire by 5 INVESTIGATES, about 12% of responding agents admitted they were considering quitting the business due to declining commissions. Around 23% expected their commissions to decline in 2025. Yet, over 300 agents insisted they were still thriving under the new rules.

    Kelly Brown, a top-performing agent, said not much had changed for her and her team. They sold over 250 properties in 2024, and Brown now negotiates her own commission with clients. The NAR settlement also bars agents from offering compensation to buyer's agents on multiple listing services.

    Brown noted that deals still looked similar to those before the rule changes, but said buyers now have more interest in negotiating commissions. Sixty-four percent of responding agents reported having clients who asked to negotiate their commission, but many saw this as nothing new.

    The NAR settlement also requires agents to have written buyer representation agreements with clients before showing them houses. Many agents received assistance from the Minnesota Realtors Association (MNR) in updating these forms.

    Doug Miller, a local real estate attorney, believes the old system was rigged against consumers. He raised questions that led to the NAR settlement and is skeptical of industry groups claiming little impact on consumers.

    Ayhan finally found his dream home after nine months of searching without an agent. He hired Miller, who collected the commission but refunded half to Ayhan as a rebate. Ayhan hopes this transaction signals a shift towards greater competition and transparency in real estate, allowing consumers to save money.