What Actually Changed With Real Estate Commissions

By Tania Michaels

Tania Michaels is a seasoned real estate professional with nearly two decades of experience in the field. She began her career as a top loan originator before becoming a key player in land acquisitions, closing over $215M in transactions.

If the last time you bought or sold a home was more than a few years ago, there have been some changes. And if you heard something back in 2023 or 2024 about commission rules, but the story just sort of moved on, you probably have only half the information.

So let me fill you in on the rest.

What actually happened? A few years ago, there were a couple of big lawsuits involving the National Association of Realtors, and the Department of Justice got involved. It was everywhere. Buyers panicked because the outcome of all the litigation was that they became responsible for paying their own agent.

Sellers got excited because they thought they would save thousands of dollars. And then everybody stopped following the story. Most people are still walking around with that headline version, and a lot of it is either incomplete or just not how it’s playing out on the ground.

What actually changed? The old system had the buyer’s agent compensation baked into every MLS listing, and that went away. It can’t be advertised on the MLS anymore. And buyers now have to sign a written agreement with their agent before touring homes that lays out the fee and what services are included.

How it’s actually working out. Sellers can still pay the buyer’s agent. That part didn’t go away. The rule just changed how that compensation is disclosed. And right now, sellers are still paying that compensation in most transactions. The big commission collapse that everyone predicted never happened.

If you’re buying. The biggest change is that you’re going to hire your agent before you ever set foot inside a house. That means signing a written agreement upfront that lays out clearly what your agent is paid and what you’re responsible for. This is what the Department of Justice wanted: full transparency upfront.

That said, what most buyers actually want to know is whether they’re paying out of pocket. In most cases, no. Buyer agents are still negotiating with the seller to cover that fee as part of the deal. And this isn’t a new concept. It works just like asking for closing costs, which has been happening in real estate for decades.

If you’re selling. You might be thinking you’ll just not pay the buyer’s agent and save the money. And yes, you can do that. It’s all negotiable. But in practice, that fee doesn’t disappear. It shifts to the buyer’s closing costs. And most buyers today are already stretched. So what they do is skip your house and go where the seller is more flexible and willing to contribute to that fee.

For you, that means fewer buyers, fewer showings, less competition, and usually a lower net. If your goal is to sell and sell faster, contributing to the buyer’s closing costs is the fastest way to get it done.

If you haven’t bought or sold since things changed, just know it doesn’t work the way it used to. A quick conversation, and I can show you realistically what it’s going to cost so you can plan for it.

Watch my video for the full breakdown. Call me at 702-583-6555, email sales@michaelsteam.com, or visit michaelsteam.com. This is where decisions get made.