Real Estate’s New Rules: Hope You Like Surprises

So, you know how real estate commissions have always been kind of… mysterious? Like, you’d buy a house, and somehow, the seller was magically covering your agent’s fee? Well, that’s about to change, and it’s going to shake things up in ways a lot of people haven’t fully processed yet.

For years, the system worked like this: Sellers would list their homes at a price that included commissions—usually 5-6% of the sale price—split between the listing agent and the buyer’s agent. Buyers got representation without having to pay their agent directly because, technically, the seller was covering it. Except, let’s be real—it was the buyer’s money funding the whole thing. They were just handing over a lump sum, and all the fees got shuffled around behind the scenes.

Now, thanks to the NAR settlement, that behind-the-scenes shuffle is getting a hard reset. Starting August 15, 2024, sellers can still offer to pay buyer agents, but they can’t advertise those commissions through the MLS. That means no more automatic assumptions—buyers and their agents will have to negotiate compensation separately. And if a seller isn’t offering? The buyer might be on the hook for their agent’s fee, on top of everything else.

See the issue? This change doesn’t just shift who pays—it could make home buying harder for a lot of people. If a buyer already stretched their budget just to afford a home, how are they supposed to come up with extra cash for their agent? And what happens if sellers don’t lower their prices to reflect the missing commission? Buyers could end up paying more overall, while appraisers try to figure out if home values should adjust or just stay the same and pretend nothing’s changed.

And let’s not forget the irony here—while plenty of government programs exist to lower barriers to home ownership, this change could add a whole new one. Buyers who can’t afford to pay an agent directly might have fewer options, and that’s not exactly a win for accessibility.

The bottom line? The real estate market is stepping into uncharted territory. Maybe home prices will adjust, maybe they won’t. Maybe sellers will still offer commissions through back channel deals, or maybe buyers will be left scrambling. Either way, if you’re in the market to buy, sell, or just watch the chaos unfold, buckle up—it’s going to be an interesting ride.