Realtor Commission Settlement

Extracted Attributes

Real estate agent

Real estate agents and real estate brokers are people who represent sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients. Brokers and agents are licensed by the state to negotiate sales agreements and manage the documentation required for closing real estate transactions.

Web Search Results

• Are Realtor Fees Included in Closing Costs?

  The recent NAR lawsuit settlement has introduced significant changes to how commissions are handled, granting sellers more leeway to negotiate commission rates and the option not to offer a buyer’s agent commission. This change makes real estate deals more transparent and flexible, potentially lowering costs for sellers. [...] | Cost | Percent cost | Dollar cost | --- | Realtor commission | 5–6% | $25,000-30,000 | | Closing costs | 1–3% | $5,000-15,000 | | Total | 6–9% | $30,000-45,000 | \Figures based on a $500,000 home sale example. ### What is realtor commission? Realtor commission refers to the fee paid to real estate agents for facilitating the home sale. [...] Commission is typically calculated as a percentage of the home's sale price, often falling within 5–6%. Our survey found a nationwide average of 5.57%, with 2.75% to the buyer's agent and 2.82% to the listing agent.

• How the real estate settlement changes buying and selling ...

  As part of the settlement, the National Association of Realtors agreed to pay $418 million over the next four years. That's in addition to $210 million that various brokerage firms had already agreed to pay. Lawyers will get a chunk of that money, but the rest will go to people who sold their homes in recent years and paid what critics argue were inflated real estate commissions. Eligibility depends on where you live, but in some parts of the country, the settlement covers people who sold homes [...] The settlement's changes in commission rules take effect in July, just as many people will be shopping for homes ahead of a new school year. But it's not clear how quickly the landscape will change. Buyers and sellers may want to talk with their agent about the costs and benefits of moving before the deadline or waiting until the new rules are in place. Remember, commissions account for $20,000 to $24,000 on a typical home. Still, that's just one factor to consider when deciding when to buy or [...] For decades, the norm in this country has been for the person selling a home to pay both her own agent and the buyer's agent. What's more, the buyer's share of that commission had to be spelled out in order to advertise the home on the big regional listing sites. Realtors insist they never fixed those commissions, but as a practical matter, the public notice worked to set a standard — often in the neighborhood of 5 or 6%, split between the seller's agent and the buyer's agent.

• Real Estate Broker Commissions Settlement

  More settlements have been reached in lawsuits alleging that real estate brokerages and trade association National Association of Realtors (NAR) violated antitrust law by requiring home sellers to pay inflated commissions to buyers’ brokers and agents. [...] The settlements cover anyone who, between October 31, 2019 and July 22, 2025, sold a home that was listed on a multiple listing service anywhere in the United States where a commission was paid to any real estate brokerage in connection with the sale. ### How Much Could I Get? [...] The information on this page is for reference only. ## Real Estate Broker Commissions Settlement Information ### 1925 Hooper LLC, et al. v. The National Association of Realtors, et al. Case No. 1:23-cv-05392-MHC Settlement Payout Varies Proof Required? Yes Claim Deadline 9/20/25 Settlement Total $44,050,000 Have a question? Scroll down to find frequently asked questions and answers about this settlement. ### Frequently Asked Questions About This Settlement ### What's Going On?

• Changing Real Estate Agent Fees Will Help All Buyers and ...

  For decades, Americans have paid some of the highest real estate agent commissions in the world, amounting to roughly $100 billion annually. But a recent settlement agreement will soon change that. After multiple class-action lawsuits nationwide alleging anticompetitive practices, the National Association of Realtors (NAR) has agreed to pay more than $400 million in damages and rewrite its current agent commission fee rules. [...] Starting in July 2024, the settlement mandates that compensation for real estate brokers cannot be listed on multiple listing services and that buyer-side real estate agents have to “enter into written agreements with their buyers.” There has been much speculation about how this change will work in practice. Here, we offer three predictions of our own: [...] This settlement will result in consumer savings. Under the new rules, buyers must sign contracts with their agents, and fees will be based on the level of service they request. Uncoupling buyer’s commissions from the multiple listing of the property will allow the seller to evaluate the total offer from the buyer. In addition, the seller will have greater ability to negotiate with their agent, as the buyer’s agent will not steer buyers away from lower-commission homes, which is currently the

• What are REALTOR® fees and who pays them?

  Our friends at Redfin® did an analysis that shows the average commission for a buyer’s agent was 2.4% in Q1 2025. This is down from 2.43% at the time the settlement was announced. While this study only looked at buyer agents because those compensation rules changed, if they were split evenly, that means they averaged 4.8% total in commissions for the buyer’s and seller’s agents combined. [...] Historically, REALTOR® fees have been paid by the seller. Both the amount of the fees and who pays them have always been negotiable, but the seller paying was a common practice. As a result of multiple legal settlements related to real estate commissions, some practice changes have been instituted that we’ll get into below.