July 2025 Newsletter- One Year In on Commission Changes
💡IDEA: Let’s talk about one year post-NAR settlement and the change in how commissions are handled. Here’s a newsletter segment to use—
2024 Was Full of Predictions About Real Estate Commissions—Here’s How It’s Actually Playing Out
It’s been a year since the real estate industry changed how buyer agent commissions are structured. At the time, there was a lot of uncertainty—and plenty of headlines predicting major disruption.
Now that we have some distance (and data), we can look back with more clarity on what actually changed—and what didn’t.
In mid-2024, headlines made it sound like this industry shif would completely upend the way people buy and sell homes:
🚨 “Buyers will be left without representation!”
🚨 “Sellers won’t pay commissions anymore!”
🚨 “Everyone will have to pay their agents out of pocket!”
One year later, here’s what we now know:
Most of the above didn’t happen.
The market adjusted—and in many ways, improved.
What People Thought vs. What Actually Happened
Thought: Buyer agent commissions would disappear or drastically reduce.
Reality: The vast majority of sales still include buyer agent compensation. Average buyer agent commissions have barely changed. According to several sources, they’ve dipped only slightly—from 2.45% to 2.37%.
Thought: Buyers would be paying their agents directly, and many could not afford to purchase because of this.
Reality: This was a big concern in 2024, but it hasn’t played out that way. Buyers aren’t writing separate checks at closing. Instead, commission terms are part of the deal we negotiate. In fact, on our team, we’ve successfully negotiated buyer agent commissions in 100% of our transactions since the change took effect almost one year ago.
Thought: Sellers would stop offering compensation and lose buyer interest.
Reality: Most sellers still pay buyer agent commission—as part of a negotiated deal. While sellers no longer “offer” commission through the MLS, compensation for the buyer’s agent is still commonly negotiated as part of the purchase agreement. In most transactions, the seller agrees to cover this fee because it ultimately supports a smoother sale, attracts more buyers, and leads to stronger offers. In short, sellers are still paying commission at the closing table—just through direct negotiation rather than upfront marketing.
Thought: The process would become more complicated.
Reality: It’s actually become more transparent. Instead of compensation being assumed or prenegotiated between a seller and the agent on behalf of a buyer’s agent, it’s now clearly laid out in three contracts:
Listing Agreement – between the seller and listing agent.
Buyer Representation Agreement – signed before home tours can begin.
Purchase Agreement – where buyer agent compensation is formally written in.
It’s clearer for everyone—and has made the process more straightforward than many expected.
What This Means Moving Forward
Buyers still have access to experienced agents without surprise costs.
Sellers still have options—and are largely sticking with what works.
The process has become more transparent, not more difficult.
The market didn’t fall apart. It just evolved—and for most buyers and sellers, the changes have been far less dramatic than predicted. We like this! Still have questions about this— we’re always here to help!
