From Straight Arrow · · 1m 20s
Courts changed real estate commissions. Why costs haven't dropped?
Courts forced commission changes but sellers still pay record fees.
In brief
Courts forced commission changes but sellers still pay record fees. Sellers face record commissions despite court-mandated transparency rules as buyers negotiate lower fees. Originally reported by Straight Arrow.
Courts changed commission rules
Courts changed the framework for how we pay Realtors so why haven't costs changed.
Sellers push back on high fees
Sellers are questioning closing documents and listing five-figure commissions with unexpected fees.
Buyers negotiate lower costs
Buyers try to save money by negotiating with agents about services they'll offer.
Discount brokers expand
Discount brokers like 1 Percent Lists LLC offer lower commissions to help sellers in high-pressure markets.
Record home prices
National median home sale price hit $424,500 in August, 34.4% higher than August 2019.
Junk fees added
Brokers now charge administrative fees separately from commissions that used to cover paperwork.
Market shifts
Buyers can't claim buyer's agent commission without a licensed agent representing them.
2024 rule change
NAR agreed to new rules in March 2024 requiring buyer agreement on commissions.
Sellers still pay high fees
Only a third of sellers negotiated lower commissions with full-price agents.
Commission structure unchanged
Traditional 6% commission structure remains despite court-mandated transparency rules.
The key point
Sellers face record commissions despite court-mandated transparency rules as buyers negotiate lower fees.
