Understanding the Recent Adjustments in US Real Estate Commissions

International Real Estate News

19th April 2024

Understanding the Recent Adjustments in US Real Estate Commissions

As a prominent real estate agency, we find ourselves navigating the forefront of a transformative period in the industry. The recent elimination of the long-standing 6% commission standard for home purchases in the US represents a seismic change in established practices. This monumental shift, triggered by an antitrust lawsuit settlement of $418 million reached by the National Association of Realtors (NAR), carries profound implications for how US real estate agents engage in business and cater to their clientele.


Upon court approval, the initial shift in the operational framework of US real estate will mandate the compulsory implementation of buyer agency agreements. Under the revised system established through the National Association of Realtors' settlement, listing agents will no longer prescribe the payment amount for the buyer's agent when listing a property. Instead, this remuneration will be subject to individual negotiation between the buyer and their agent.

The second significant change revolves around how commissions are typically handled. Traditionally, it's been the seller's responsibility to cover the commission for both their own agent and the buyer's agent. But if the settlement goes through, the buyer will now assume responsibility for compensating their respective agent.

Thirdly, through the settlement, NAR agreed to remove all sections within the multiple listing service (MLS) that disclose broker compensation. Additionally, there will be a prohibition on mandating agents to subscribe to MLSs as a prerequisite for offering or receiving compensation for their services.


These transformative measures are poised to usher in a significant reduction in the costs associated with selling homes in the US. With commission rates no longer set in stone, real estate agents will likely face heightened pressure to adjust their fees as they compete for clients' business.

Economists project that commissions could plummet between 25 and 50 percent, thereby exerting downward pressure on home prices throughout the market. This anticipated decline in transaction costs is anticipated to not only benefit consumers but also stimulate increased activity in the housing market, fostering greater affordability and accessibility for prospective buyers. The National Association of Realtors said that these changes will go into effect in mid-July 2024, pending court approval.

Back to Archive

Share this Article


Malta Sotheby's International Realty

Launched on the Maltese islands in 2013, Malta Sotheby's International Realty had one clear vision and goal in mind – to offer our clients the highest level of commitment and quality of service in the high-end residential and commercial real estate market throughout the Maltese Islands. We derive our success from local expertise, professionalism, commitment, and discretion to meet any client’s needs. We understand the importance of finding a home that not only suits your needs but suits your vision for the future – a place that facilitates comfort, creativity and familiarity. We realise that a home is much more than a place to live - it is a sanctuary from where we build families and dreams. Our real estate professionals will guide you towards finding your ideal home throughout the entire buying and selling process. The culture of Malta SIR is defined by our knowledgable and dedicated diverse team which spans over multiple nationalities, whether you are a vendor or a buyer we speak your language.

The listing information set forth on this site is based upon information which we consider reliable, but because it has been supplied by third parties to our franchisees (who in turn supplied it to us) , we cannot represent that it is accurate or complete, and it should not be relied upon as such. The offerings are subject to errors, omissions, changes, including price, or withdrawal without notice. All dimensions are approximate and have not been verified by the selling party and cannot be verified by Sotheby’s International Realty Affiliates LLC. It is recommended that you hire a professional in the business of determining dimensions, such as an appraiser, architect or civil engineer, to determine such information.طراحی سایت