New Realtor Commission Rules: Did They Actually Reduce Agent Fees?
What Changed
In August 2024, the National Association of Realtors (NAR) implemented a settlement that changed how real estate agent commissions are handled. Sellers are no longer required to offer commission to buyer agents through MLS listings. At the same time, buyers must now sign a written agreement with their agent before seeing homes, outlining how that agent will be compensated and who is responsible for paying it.
Initial Expectations
When the rule changes were announced, many industry experts predicted a significant drop in agent commissions. Some forecasted a reduction of 25 to 50 percent over time. Early surveys showed a slight decline, particularly in buyer-side commissions. Many expected further erosion of fees as buyers became more aware of their ability to negotiate and as commission structures became more transparent.
What Brokerages Are Reporting
Despite those expectations, large brokerages such as Compass and Anywhere Real Estate have reported little change. Executives say average commission levels have remained steady. Compass’s CFO noted that while some markets showed minor shifts in either direction, the overall trend has been neutral. In the second quarter of 2025, brokerages continued to report commission rates similar to the year before.
What the Data Suggests
A recent analysis by the Federal Reserve showed only a small decline in commissions since the rule changes took effect. Importantly, the data found that the requirement for written buyer agreements did not appear to be the cause of the decline. Instead, shifts in commissions may be related to broader trends like rising home prices and the increased use of digital platforms to find agents.
How the Market Is Responding
Many agents and brokerages have adapted by finding other ways to share buyer-agent compensation. These include including it in private listing websites, inserting it into listing photos, or negotiating it off-MLS. Sellers are still frequently choosing to offer buyer-agent commissions privately, often at rates similar to past norms such as 2.5 or 3 percent.
What Buyers and Sellers Should Know
Buyers now must sign a contract with their agent before viewing homes. This contract outlines the agent’s compensation and how it will be handled.
Sellers are no longer required to offer a commission to the buyer’s agent through the MLS, but many still do so behind the scenes.
Buyers may be responsible for paying part or all of their agent’s fee, depending on the agreement.
Commission negotiations are becoming more common, and compensation is now more transparent and flexible.
Conclusion
The original intent of the commission reforms was to lower agent fees and increase transparency. So far, those changes have not significantly disrupted the way commissions are structured. Although some minor declines have been observed, most agents are still earning similar compensation. The market has largely adjusted to the new rules while keeping commission levels relatively stable.
Attribution:
This article is an original rewrite based on the Homes.com article titled “New rules were supposed to stunt agent commissions.
