Why the Landmark Realtor Settlement Hasn’t Changed Realtor Fees
In 2024, the National Association of Realtors (NAR) reached a $418 million settlement to resolve lawsuits claiming that the system for paying real estate agents kept fees artificially high. The intent of this Realtor settlement was to make the process more transparent and to give buyers more power to negotiate directly with their agents.
On paper, this was supposed to be a major shift in how commissions work in the United States. The idea was simple: if buyers and their agents negotiated fees directly, costs might come down. But a year later, the numbers tell a different story. According to data from Redfin as reported in the Wall Street Journal, the average commission paid to a buyer’s agent has actually ticked up slightly, from 2.38% in 2024 to 2.43% in 2025.
What Changed After the Settlement
The most obvious change is in transparency. Before the settlement, sellers typically set the fee for the buyer’s agent, and that information was displayed in multiple listing services (MLS). Buyers rarely asked about commissions because the amount was already determined on the seller’s side.
Read: The Truth About the MLS and Online Listings
Now, the MLS no longer includes those commission offers. Instead, buyers must sign an agreement with their agent outlining how much they will pay before they tour homes. This makes the cost of representation more visible.
From my perspective, this part of the process has changed. Buyers and agents now talk about fees earlier in the relationship. But in practice, most of my colleagues and friends in real estate continue doing business much as they always have. Sellers often still offer to cover the buyer’s agent fee as part of the deal, and buyers usually accept the standard structure.
Why Fees Have Stayed the Same
There are several reasons why the hoped-for drop in commissions has not materialized:
- Agents are slow to change: Many listing agents still signal expected commission rates to buyers’ agents informally, even though it is no longer displayed in the MLS.
- The housing market has shifted: With slower sales and homes sitting longer, sellers are more likely to agree to cover higher commissions to attract buyers.
- Buyers rarely negotiate: Surveys show that only about a quarter of buyers attempt to negotiate their agent’s fee. Most sign quickly without exploring other options.
- Perception of value: Many buyers feel that hiring the right agent is more important than shaving down commission costs. Trust and expertise outweigh savings in the minds of many clients.
Will Change Come Later
Some industry experts believe that changes may come over time as buyers get more comfortable negotiating and as alternative business models gain traction. There are already small signs of buyers exploring ways to buy without an agent in certain markets. But for now, commissions in the United States remain among the highest in the world.
Final Thoughts
The Realtor settlement was designed to increase transparency and put negotiating power in the hands of buyers. In that sense, it has worked. Buyers are more aware of how agents are paid, and those conversations are happening sooner. But in terms of actual cost savings, the impact has been minimal.
From what I have seen, the process may look different, but the outcomes are very much the same. Buyers and sellers continue to rely on traditional practices, and commissions remain steady. If you are considering buying or selling, the best thing you can do is understand your options, ask questions about fees upfront, and work with a professional you trust.
If you are unsure how the realtor settlement may affect you as a buyer or seller, reach out to me. I am happy to answer your questions and connect you with a trusted real estate professional in your area who can guide you through today’s market with confidence.
