That’s when, in 2024, the National Association of Realtors agreed to a $418 million antitrust settlement, which includes new commission rules by August of that year, that seemed like a turning point for American homebuyers.
Agents’ earnings could be cut by 25% to 50%, analysts predicted. Consumer advocates celebrated. Many said that the 6% commission era had ended.
Today, almost two years later, buyers are paying virtually the same amount they did prior to the purchase.
While buyer agents are still getting paid by home sellers, according to Redfin data, commission rates have actually ticked up.
The average commission paid for a home of less than $500,000 has increased to 2.49% from 2.42% at the time the new rules went into effect. That gap translates to thousands of dollars in potential savings for a typical $300,000 house.
Why the Numbers Refuse to Move
It’s not the regulation itself that is the real issue, it’s the power dynamic within the transaction. Two-thirds of housing counselors surveyed in 22 states, in 37 states, reported that they never or rarely negotiate agent fees with their clients.
Two-thirds of housing counselors report that they “never” or “rarely” negotiate agent fees with their clients.
Those who resist may find their resistibility mistaken and end up being categorized as difficult buyers, thus losing representation in markets that are already tight.
The promise of transparency has also had a negative impact. Agents who were unable to benchmark competitor rates, a practice that is already uncommon, were unable to do so after eliminating commission data from MLS databases, which is not good.
It’s not good that agents who couldn’t benchmark the rates of other agents in the marketplace were unable to do so after removing commission data from the MLS databases.
Pocket listings, meanwhile, increased by a whopping 79%, with almost 8% of the properties in the mid-Atlantic starting as office listings before reaching public platforms in early 2025.
Reform Will Come — Just Not on the Courthouse’s Timeline
The settlement did change things, though, with many more conversations that take place before the commission, written contracts that are the norm, and more buyers growing aware of the risks than ever before. That groundwork matters.
When sellers gain market leverage is when the real test comes, though. If competition again, buyers could end up paying full agent costs with no compensation or reimbursement for the agent.
If bidding wars resume, buyers may end up paying all agent fees with no reimbursement from the agent — an extra cost that may push them out of the market, especially since they are already battling high rates and low supply.
There is a market-based alternative, but it’s starting to emerge with the help of flat-fee brokerages and AI platforms. The homebuying revolution could be yet to come. It simply is not going to do anything that’s political.
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