O
ct. 31 2023 – a Kansas City jury awarded a $1.8 billion verdict against the National Association of Realtors (NAR) and several major brokerages. On Nov. 26 2024 the court approved a $418 million settlement that mandates sweeping industry‑wide reforms to buyer brokerage agreements, including the removal of posted buyer‑broker compensation. From Aug. 17 onward, anyone touring a home with a Realtor must sign a buyer‑representation agreement that specifies compensation.
The lawsuit alleged that NAR’s MLS rules artificially raised agent commissions by obligating sellers to pay buyer agents, violating antitrust law, stifling competition, and shifting inflated, non‑negotiable costs onto sellers.
Judi Desiderio, a broker with over thirty years of experience, notes that in Kansas City’s East End business is conducted with full transparency and cooperation. Competition is fierce, even to the point of a luxury brokerage advertising 1 % listing fees. Commissions are discussed openly with clients, and representation and compensation remain distinct. New York’s 1992 Agency Disclosure Law, which requires buyers and sellers to sign a disclosure agreement identifying who agents represent, exemplifies this clarity.
Desiderio observes that the market has evolved from open listings to exclusive contracts and online aggregators like Zillow, yet the public remains the ultimate driver. She points out that the U.S. (4‑6 % commissions) and Mexico (5‑8 %) are the only countries where agents are paid solely by commission as independent contractors. In Canada, the UK, France, Singapore, Australia, Germany, Austria, Spain, and others, agents receive wages plus benefits and commissions of 1‑5 %, with sellers typically covering the cost. Germany’s rates can reach 7 %.
The key question is whether the lawsuit benefited the public: did it lower fees, increase transparency, and improve satisfaction? Nicole Friedman’s Wall Street Journal article, “Settlement on Realtor Fees Hasn’t Cut Costs,” argues that the outcome was negligible. Jack Miller, CEO of T3 Sixty, agrees that “nothing changed.” Redfin data shows the average commission paid to a buyer’s agent in Q2 2025 was 2.43 % of the sale price, up from 2.38 % a year earlier.
Moving forward, the real issue is whether the settlement will truly alter the market. Desiderio, who has bought, built, and sold dozens of properties, maintains that she compensates both listing and selling brokers to maximize exposure. As a buyer, she pays for professional services—accounting, legal, brokerage—recognizing that these experts earn fees through experience and guidance.
So, are you better off? Judi A. Desiderio, managing partner and senior vice president of William Raveis in the Hamptons and North Fork, writes independently as a guest author.
