T
he real estate industry was bracing for a seismic shift after the National Association of Realtors (NAR) agreed to pay $418 million in settlement claims last March. The changes aimed to curb inflated fees by prohibiting certain practices that allowed agents to control commissions. However, as the first spring homebuying season since the rule changes approaches, business remains largely unchanged.

    While some mechanics behind negotiating commissions have altered, dollar amounts remain close to pre-settlement averages, according to agents and housing market experts nationwide. The practice of buying or selling a home without an agent has also failed to take off as expected. "It's created a higher level of transparency between buyers and their agents," said Harvey Blankfeld, a Las Vegas-based real estate agent. "However, it hasn't impacted costs here in Vegas."

    Prior to the settlement, sellers would list their homes with an agent, while buyers toured properties with their own agent. The buyer's and seller's agents would split a commission of 5% to 6%, paid by the seller, translating to $21,000 to $24,000 for the median-priced home. The settlement introduced two key changes: sellers can no longer promise compensation to buyer's agents on MLS databases, and buyers must have a representation agreement detailing compensation before touring homes.

    These changes aimed to make agent fees more transparent and negotiable. Under the old system, sellers would share their commission willingness in MLS listings, sparking concerns that buyer's agents would steer clients away from lower-rate listings. While 5% to 6% has long been the norm in the US, it's far above global averages of 1% to 3%. Now, compensation conversations occur outside the MLS, but most sellers still offer commissions to buyer's agents. The NAR maintains that commissions were always negotiable.