The headlines made it sound like everything changed. Here's what actually happened, what didn't, and what it means for buyers and sellers right now.
If the last time you bought or sold a home was before 2024, the process looks a little different now. Not dramatically different, but different enough that you should know what changed before you're in the middle of a transaction.
Back in 2024, the National Association of Realtors settled a major lawsuit that changed how buyer's agent commissions are handled. It was all over the news at the time, and the headlines were dramatic. Buyers thought they were going to have to pay their agent out of pocket on top of their down payment. Sellers thought they were going to save thousands by not covering the buyer's agent fee anymore. And then most people stopped following the story. They heard the headline, formed an opinion, and moved on.
The problem is, a lot of what stuck with people was either incomplete or just not how things are playing out. Here's what's actually happening.
1. What actually changed. The old system had the buyer's agent commission built into every MLS listing. That part went away. Buyer agent compensation can no longer be advertised on the MLS. And if you're a buyer working with an agent, you now sign a written agreement before touring homes that lays out what the agent charges and what services are included.
But here's the part most people missed: sellers can still offer to pay the buyer's agent. That didn't go away. The rule changed where and how the conversation happens, not whether it happens at all. And right now, sellers are still covering the buyer's agent fee in most transactions. The commission collapse that everyone predicted never materialized. According to Clever Real Estate's 2026 survey, buyer agent fees dipped briefly after the settlement and then rebounded. The total average commission in 2026 sits at about 5.70%.
"The rules changed, but the fundamentals didn't."
2. What this means if you're buying. The biggest change you'll notice is the written agreement. Before you start touring homes with an agent, you'll sign something that spells out the fee and what you're getting. In most cases, your agent can negotiate the seller's contribution to cover that cost as part of your offer. It works like asking for closing cost help, which buyers have been doing for years. The paperwork looks a little different, but the end result is usually the same.
And the data shows that buyers still want representation. According to the NAR 2025 Profile of Home Buyers and Sellers, 88% of buyers purchased through an agent or broker. That number held steady after the rule change. People still want someone helping them find the right home, negotiate terms, and catch issues they might miss.
3. What this means if you're selling. You're no longer required to offer buyer agent compensation. But before you decide to skip it, consider what that looks like from the buyer's perspective. When buyers have to come up with an extra 2.5% to 3% out of pocket to have someone represent them, a lot of them will look at listings where the seller is covering it instead. That usually means fewer showings, a smaller buyer pool, and a longer time on market, which typically leads to a lower sale price. The money you thought you were saving often ends up costing more on the back end.
The sellers getting the best results right now are the ones working with their agent to figure out the smartest approach for their specific situation and making sure their home is positioned to attract as many buyers as possible.
The bottom line. The rules changed, but the fundamentals didn't. Buyers still want representation. Sellers still benefit from having as many qualified buyers as possible walking through their door. The commission conversation is still a negotiation, not a fixed cost. The only real difference is more transparency, and that's a good thing for everyone.
If you haven't been through the process since these changes went into effect and you're thinking about making a move, it's worth a quick conversation so you know exactly how things work now. Call me at 917-524-9680 or email me at [email protected]. You can also visit newyorklovestherosenteam.com for more information.
