Real Estate News

How Regional Price Shifts Influence Interstate Home Purchases

Regional price differences significantly impact homebuyers' decisions to purchase properties across state lines. Market shifts create opportunities for strategic relocation investments

flareAI Services

07 Sep 2025 — 6 min read

America's homebuyers are on the move, driven by a potent mix of soaring home prices and a seismic shift in real estate rules. In 2025, the lure of affordability is pulling families from pricey coastal cities to quieter, more budget-friendly regions, reshaping where and how people plant their roots. The National Association of Realtor's (NAR) 2024 settlement has upended decades-old commission norms, adding a layer of complexity and opportunity to interstate home purchases. For those eyeing a cross-country move, the interplay of regional price gaps and new commission structures demands a sharp understanding of local markets and a knack for negotiation.

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How Regional Price Shifts Are Reshaping Interstate Home Buying Decisions

The great American migration is in full swing. Homebuyers are leaving high-cost urban centers for regions where their savings go further, drawn by stark price disparities. In San Francisco, the cost of a typical home can be enough to purchase only a modest condo, while in Boise, the same budget could stretch to a larger, more comfortable family home. This contrast highlights how location can dramatically affect buying power.This trend, fueled by remote work and economic pressures, is backed by data showing a surge in relocations to affordable hubs like Raleigh, North Carolina, and Boise. The promise of lower costs is clear, but the journey to a new state comes with a catch: navigating the evolving landscape of real estate commissions.

The NAR settlement, finalized in 2024, dismantled the traditional 5-6% commission model, where sellers typically paid both their agent and the buyer's. Now, commissions are more openly negotiated, giving buyers and sellers new leverage but also new responsibilities. A recent analysis reveals that while the settlement hasn't slashed transaction costs as much as some expected, it has sparked a shift in how fees are discussed. Buyers moving across state lines must now factor in these negotiations alongside regional price differences, making local expertise more critical than ever.

The Pull of Affordable Markets

Imagine a family in Seattle, unable to afford a home in their local market, exploring options in Boise. Their budget could stretch from a small condo in Seattle to a spacious single-family home in Idaho. Beyond the purchase price, they also look for ways to save on transaction costs. With commissions now more negotiable, they work with their Seattle agent to reduce fees and explore different buyer's agent arrangements in Boise. While the potential savings are appealing, they also learn that commission structures and norms vary by region and that lower rates don't always guarantee lower overall costs.

Regional markets operate on their own logic. In high-cost states like California or New York, commissions were often higher to match lofty home prices. In contrast, markets like Idaho or Tennessee leaned toward lower rates even before the settlement. For interstate movers, this creates a patchwork of expectations. A buyer relocating from Boston to Charlotte might assume commissions align with what they know, only to discover local agents operate differently. Understanding these variations requires research and, often, a local guide to demystify the process.

Navigating New Challenges

For buyers, the post-NAR era offers both freedom and complexity. Negotiating agent fees is now a standard part of the process, but it demands confidence and market knowledge. A practical guide advises buyers to start by requesting a 1% commission reduction, backed by comparisons to local rates. However, not all agents are open to cutting fees, particularly in competitive markets where homes sell quickly. Buyers also face the hurdle of decoding unfamiliar markets. A Chicagoan eyeing a home in Austin might struggle to determine whether a 3% buyer's agent fee is fair without local context.

Sellers, too, are navigating uncharted waters. Lower commissions can attract budget-conscious buyers, but they risk reducing agent interest. In a bustling market, a seller offering a 2% buyer's agent commission instead of 3% might see fewer showings, as agents prioritize listings with higher payouts. The solution lies in strategic negotiation. Sellers who emphasize their home's strengths perhaps a prime location or recent upgrades can often justify standard rates while keeping their property competitive. Clarity in these discussions is key, as commission agreements now hinge on individual deals and local norms.

Opportunities Amid Change

The new rules open doors for savvy homebuyers. With commissions negotiable, buyers can press for terms that suit their budget, especially in markets with ample agent competition. The same guide suggests asking agents to detail their services marketing, open houses, or staging and tying fees to tangible value. For those moving to undervalued regions, the savings can be transformative. A couple relocating from Los Angeles to Raleigh might save $300,000 on a home purchase, dwarfing any agent fees, even if paid out of pocket. These opportunities are most pronounced in markets where price growth lags behind coastal hubs.

Local professionals are proving essential in this shifting landscape. A Boise agent, for example, can alert a California transplant to hidden costs like flood insurance or property taxes that might offset a lower home price. Sellers, meanwhile, benefit from agents offering flexible services, such as basic listings for budget-conscious clients or premium marketing for high-end properties. As industry insights highlight, understanding closing costs, including commissions, is crucial to avoiding surprises at the closing table.

Adapting to a New Realty

Real estate agents are feeling the impact, too. With interstate moves surging, agents are rethinking how to attract clients crossing state lines. Some are offering virtual tours or market analyses tailored to out-of-state buyers, while others experiment with flat-fee models or relocation support. The NAR settlement has forced agents to stand out, whether through niche expertise or transparent pricing. In fast-growing markets like Raleigh or Boise, agents who bridge the gap between local practices and newcomer expectations are gaining an edge.

A Roadmap for the Future

Regional price shifts and commission changes are redefining the path to homeownership. The freedom to negotiate fees offers savings, but it also requires buyers and sellers to approach deals with eyes wide open. For those chasing affordability across state lines, the rewards are substantial: a home that fits both their lifestyle and their wallet. Experts predict that remote work and evolving commission rules will continue to drive relocations, cementing interstate moves as a cornerstone of the housing market. Before signing the dotted line, consult a local expert to navigate your new market's nuances. In a world of shifting prices and rules, knowledge is the foundation of a smart move.

Frequently Asked Questions

How much can you save by moving from expensive coastal cities to affordable regions in 2025?

Homebuyers can save hundreds of thousands of dollars by relocating from high-cost areas to affordable markets. For example, a median home in San Francisco costs around $1.3 million compared to $450,000 in Boise, Idaho a difference of $850,000. A couple moving from Los Angeles to Raleigh might save $300,000 on their home purchase alone, making interstate moves financially transformative for many families.

How do the new NAR commission rules affect interstate home buyers in 2024-2025?

The 2024 NAR settlement eliminated the traditional 5-6% commission model where sellers paid both agent's fees, making commissions fully negotiable. Interstate buyers now face varying regional commission norms and may need to pay their buyer's agent directly (typically 2-3%). While this creates opportunities to negotiate lower fees, buyers must research local market practices and factor these new commission structures into their relocation budget.

What should you know about regional real estate commission differences when buying a home in another state?

Regional markets have distinct commission norms that vary significantly across states. High-cost markets like California and New York traditionally had higher commission rates, while states like Idaho and Tennessee leaned toward lower rates even before the NAR settlement. Interstate buyers should research local commission expectations, work with knowledgeable local agents, and be prepared to negotiate fees based on regional standards rather than assuming rates from their home state apply.

Disclaimer: The above helpful resources content contains personal opinions and experiences. The information provided is for general knowledge and does not constitute professional advice.

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