"Rethinking Real Estate Commissions: Impacts on Home Buyers and Sellers"
The National Association of Realtors settled a lawsuit with Missouri homeowners, leading to changes in real estate agent commissions. Home sellers are still required to pay their agent a commission, but the fee is negotiable. Buyers are not obligated to pay the buyer's agent commission, but covering it could attract more buyers. The settlement also requires written agreements about compensation and prohibits advertising seller-paid commissions. This change may lead to lower costs for sellers and higher costs for buyers, with potential impacts on realtors' earnings. Various discount brokerages offer alternative fee structures, and the industry is adapting to these changes.