W
hen you sell a home, commissions are the biggest cost. Over the years they rose, sparking lawsuits that accused the National Association of Realtors (NAR) and other firms of keeping rates artificially high. In March 2024 NAR denied wrongdoing but agreed to a $418 million settlement designed to cut costs and increase transparency.

    Traditionally a sale cost 5–6 % of the price—about $24,000 on a $400,000 house—paid by the seller to both the listing and buyer’s agents. Buyers often had no clear idea of the agent’s fee because most states did not require a signed agreement. The settlement required several changes:

    * Sellers no longer set a buyer‑agent commission; instead they negotiate fees directly with their own agent.

    * Listing agents cannot advertise commission splits on the MLS.

    * Buyers must sign an agreement that specifies the exact amount they will pay for the agent’s services, which can come from either the buyer or the seller.

    * The new rules allow sellers to refuse to cover the buyer‑agent fee, leaving it to the buyer, and encourage agents to offer flat‑fee marketing or reduced commissions if buyers perform tasks such as searching or attending open houses.

    The new rules took effect on August 17 2024. A Redfin study shows that buyer‑agent commissions have barely changed: 2.34 % in October 2024 versus 2.35 % in August, rising to 2.40 % in Q1 2025. For homes under $1 million, the average commission climbed from 2.26 % late 2024 to 2.29 % in Q1 2025; for sub‑$500 k sales, it rose from 2.42 % in Q3 to 2.49 % in Q4.

    Why the settlement hasn’t lowered costs? Many agents still rely on the old commission model and are slow to adopt the new structure. Additionally, most buyers and sellers are not frequent enough in the market to stay abreast of best practices. A strong team—agent, lender, insurance advisor—helps avoid hidden fees.

    If you plan to sell, discuss all fees with your agent at the outset and sign a written agreement that spells out the costs. Clarify whether you will cover the buyer‑agent fee and what that fee will be. A knowledgeable, trustworthy agent will explain every step and help you negotiate the best deal.