How are Realtors paid?

Since the National Association of Realtors commission settlement in August 2024, real estate commission structures have changed. The key changes follow:

Listing agents can no longer advertise the commission rates for buyer agents on the Multiple Listing Service.

Buyers must have a signed written agreement detailing compensation before touring homes. Barefoot Realty gives each potential buyer who views homes at Americana Cove a folder with a written statement outlining how commission is paid within the community and that it is negotiable.

Generally, sellers still pay commission to buyer’s agent; however, the commission is negotiated more often than in the past.

Have commissions been reduced? Buyer’s agents usually request 3% from sellers for bringing the buyer. This has been the norm for years. Listing agents normally receive 2 to 3% for listing the property, depending on the listing agreement.

A strategy that a seller can do is to negotiate the commission for the buyer’s agent when they are negotiating the price of the home, notes Broker Marty Pozgay. “If an agent represents a buyer who offers $10,000 less for a home, then maybe the seller might negotiate that he will accept the offer but the buyer would need to pay for the agent’s commission.”

Sellers and buyers are much more aware of commission and the role it plays in a real estate transaction. “The lawsuit brought more transparency to real estate transactions and emphasizes that all commission can be negotiated,” explains Pozgay.