T
he residential real estate market was expected to undergo a significant shift last year after the National Association of Realtors settled antitrust lawsuits filed by home sellers. The plaintiffs' lawyers argued that changes in the agreement would reduce the long-standing convention of sellers paying 5-6 percent commissions to their brokers, who then split the money with buyer's agents. However, the settlement didn't ban fee-splitting or require buyers to compensate their agents.

    Instead, the NAR agreed to pay $418 million in damages and tweak its rules, requiring fuller disclosure of commission terms to clients. While this change has brought more transparency to the process, the way we buy and sell homes remains largely unchanged. Home prices continue to escalate, with nearly eight months passing since new guidelines took effect.

    The 5-6 percent rate remains standard, but listing agents must now get written client approval before offering to share a commission with a buyer's broker. This change has been met with skepticism by some, who argue that agents can still work out splits by text or email and contracts can specify that a portion of the seller's fee goes to the buyer's broker.

    Industry experts expect commissions to fall over time due to ongoing investigations into industry practices and growing pressure from buyers pushing for smaller fees. However, others argue that the commission-splitting system has worked well for decades, especially for first-time and less-affluent buyers who struggle to scrape together a down payment.