"Landmark Settlement: How Real Estate Commissions Are Set to Change"

The National Association of Realtors has reached a landmark legal settlement that disrupts the traditional model of sellers paying for the buyer’s agent in a home purchase, potentially saving home sellers billions of dollars annually. Starting in July, buyers can no longer rely on sellers paying the agents representing them, which could shift typical commission costs back to the buyer. The settlement also prohibits listing buyer agent compensation and requires written agreements detailing compensation and services. This change may lead to a shake-up in the real estate industry, with potential impacts on transaction costs, agent services, and the emergence of new business models.