I
n August 2024, a new rule aimed to revolutionize the real estate industry by shifting the burden of paying buyer's agents from sellers to buyers. However, reports suggest that real estate agents have found ways to circumvent this change, leaving home sellers with little to no savings.

    Historically, home sellers were responsible for paying both their agent and the buyer's agent, resulting in commissions ranging from 5% to 6%. The new rule was supposed to alleviate some of this burden by making buyers responsible for compensating their own agents. However, evidence indicates that little has changed.

    Under the old system, sellers paid a total commission of 5% or 6%, typically split equally between the two agents. In contrast, the new rules allow buyers to pay their agent's commission, which could save sellers thousands of dollars on a single sale. For instance, on a $500,000 sale with a 6% commission, a seller who negotiated a 3% commission with their agent and paid nothing for the buyer's agent would save $15,000.

    Despite this potential savings, real estate agents have found ways to continue charging sellers high commissions. A key change in the new rules prohibited agents from offering commission splits through multiple listing services (MLS), but they soon adapted by communicating through other means. As a result, sellers' commissions have barely decreased, dropping from 5.64% to 4.96% on average.

    The Consumer Federation of America notes that buyers should take advantage of the new rules and negotiate their agent's compensation, aiming for a rate of two percent or less. Sellers can also benefit by pursuing lower commission rates, but many are unaware of this opportunity or lack the leverage to negotiate effectively.