Real Estate News

Mandatory Agency Agreements Altered Experiences for Home Buyers

Mandatory agency agreements have significantly altered how home buyers navigate the real estate market. These new requirements change buyer-agent relationships, transparency, and the overall purchasing process

flareAI Services

03 Dec 2025 — 6 min read

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Picture a first-time home buyer in Holland, Michigan, standing outside a charming bungalow, ready to make an offer. The excitement fades when they face a mandatory agency agreement, tying them to a full-service real estate agent with steep commissions and little flexibility. This scenario, all too common in today's $241.3 billion real estate market, has frustrated buyers for years. But recent changes, including the new real estate commissions post-NAR settlement, are reshaping the industry. Platforms like Side Door are stepping in, offering buyers and sellers in Michigan and Florida a transparent, cost-effective way to navigate these changes, empowering them to take control of their home-buying journey.

Home buying or selling shouldn't mean paying for services you don't use or need. Now, with new rules, you can choose exactly what you pay for. Side Door's smart match engine connects you with vetted agents offering flexible service levels, so you pay only for what you use. Keep the guidance, skip the extras, and save thousands and still get the keys in hand. Join Side Door for FREE today!

The Impact of Mandatory Agency Agreements

Mandatory agency agreements have long defined real estate transactions, requiring buyers to work exclusively with an agent who often charges a fixed commission typically 5-6% of the sale price. For those searching “where to start with home buying” or exploring “michigan real estate,” these agreements can feel like a roadblock, piling on fees and limiting choices. The complexity is daunting: buyers must navigate contracts, inspections, and negotiations, often with little say in the process. According to industry analysis, the U.S. real estate sales and brokerage market is valued at $241.3 billion in 2025, growing at a steady 1.0% annually. Yet, the traditional model, with its rigid structures, often leaves buyers feeling sidelined.

The recent National Association of Realtors (NAR) settlement has introduced significant changes to commission structures, shaking up the industry. As reported by Yahoo Finance, these new rules haven't drastically lowered costs for buyers or sellers, but they've opened the door to greater negotiation. Buyers can now discuss commissions upfront, potentially saving thousands. However, challenges remain: some agents may prioritize higher-commission deals, and misconceptions about “free” services can confuse buyers. For those pursuing “FSBO sales” or aiming to “sell my home for less,” the traditional system still feels restrictive.

Side Door's Innovative Approach

Enter Side Door, a U.S.-based real estate tech platform designed to empower buyers and sellers in regions like Michigan, West Michigan, Holland, and Florida. Unlike conventional brokerages, Side Door offers a flexible, à la carte model, allowing users to choose only the services they need whether it's a title company like Chicago Title's Holland office or a lender like Lake Michigan Credit Union. This approach aligns perfectly with searches like “buy a home in Michigan” or “where to start in real estate,” offering guided workflows and vetted professionals without the hefty commissions. Led by an experienced real estate practitioner, Side Door blends hands-on expertise with digital tools, ensuring users maintain control while avoiding unnecessary costs.

Side Door's unique differentiators set it apart in a crowded market. By allowing real estate agents to offer tailored services, it enables them to tap into deals they might otherwise miss, addressing the needs of professionals searching for “get more leads for my real estate business.” The platform also fosters collaboration among title companies, lenders, and inspectors, creating a seamless ecosystem focused on the buyer's needs. This contrasts sharply with the fragmented, often competitive relationships in traditional real estate, where professionals may prioritize their own interests over the client's.

The numbers underscore the opportunity for innovation. The U.S. real estate brokerage market, valued at $206.45 billion in 2025, is projected to grow to $252.51 billion by 2030, with a 4.11% compound annual growth rate, according to Mordor Intelligence. Side Door's model taps into this growth by addressing buyer frustrations and offering a transparent alternative to the status quo.

Navigating Objections and Competition

As a startup, Side Door faces hurdles in a competitive landscape dominated by established players like Real Estate One and West Edge Realty. Some prospects hesitate, citing the platform's less polished website or the marketing muscle of traditional brokerages. According to Realtor.com, full-service agents benefit from streamlined processes and hefty advertising budgets, making it easier for them to attract clients. Yet, Side Door counters these objections with its commitment to affordability and user empowerment. By leveraging social media platforms like Facebook, Instagram, YouTube, and TikTok, Side Door builds trust and connects with buyers where they're already active, sharing insights on commission negotiation and market trends.

Another challenge is the perception that new commission rules guarantee lower costs. As Yahoo Finance notes, while the NAR settlement allows for negotiation, savings aren't always significant. Side Door addresses this by offering clear pricing and step-by-step guidance, helping buyers understand their options. For example, a seller in Florida exploring “sell my home for less” can use Side Door to select only essential services, avoiding the 5-6% commission trap. Similarly, buyers in West Michigan can negotiate terms with agents, ensuring they pay only for what they need.

Practical Tips for Buyers and Sellers

The NAR settlement has opened new doors, but navigating the changes requires strategy. Here are actionable tips inspired by Clever's guide to commission negotiation:

Research Local Rates: In Michigan and Florida, commission rates vary. Compare offers from multiple agents to find competitive pricing.
Negotiate Upfront: Discuss commissions early, clarifying what services are included to avoid surprises at closing.
Consider À La Carte Services: Platforms like Side Door let you pick specific services, reducing costs without sacrificing support.
Understand the Fine Print: Review agency agreements carefully to ensure flexibility and transparency.

Buyers and sellers should also be wary of misconceptions. The NAR settlement doesn't eliminate commissions or guarantee “free” agent services. Instead, it shifts the burden to negotiate terms, which can lead to fewer showings if agents prioritize higher-commission deals. Side Door mitigates this by connecting users with professionals who prioritize client needs, ensuring a smoother process.

A Memorable Redefining the Home-Buying Experience

The real estate industry is at a crossroads. With the market poised to reach $252.51 billion by 2030, the demand for innovative solutions is clear. Side Door is leading this charge, offering a transparent, flexible alternative to mandatory agency agreements. Whether you're a first-time buyer in West Michigan searching “where to start with home buying” or a seller in Florida aiming to “sell my home for less,” Side Door empowers you to take charge without the stress of traditional commissions. As the NAR settlement reshapes the landscape, platforms like Side Door are paving the way for a more buyer-centric future. Next time you're ready to step into your dream home, tools like Side Door can help you cross the threshold with confidence and savings. This post may contain affiliate links to services we recommend.

Frequently Asked Questions

What changed for home buyers after the NAR settlement regarding real estate commissions?

The National Association of Realtors (NAR) settlement introduced new rules that allow buyers to negotiate commissions upfront with their agents, rather than accepting fixed 5-6% rates. While these changes haven't drastically lowered costs across the board, they've opened the door for greater transparency and negotiation power. Buyers can now discuss commission structures early in the process, potentially saving thousands by choosing only the services they actually need.

How can I buy a home in Michigan without paying full real estate agent commissions?

Platforms like Side Door offer an à la carte approach where you can select only the specific services you need such as connecting with title companies like Chicago Title's Holland office or lenders like Lake Michigan Credit Union without committing to a full-service agent's 5-6% commission. This flexible model is particularly beneficial for buyers in Michigan, West Michigan, and Holland who want more control over their home-buying journey. By negotiating services upfront and researching local commission rates, you can significantly reduce costs while still getting professional support.

Are FSBO sales a good alternative to traditional real estate agents after the commission changes?

FSBO (For Sale By Owner) sales can be a cost-effective option, especially with the new commission negotiation rules making the market more flexible. However, the process requires significant effort in marketing, negotiations, and paperwork. Modern platforms that offer guided workflows and vetted professional connections provide a middle ground giving you the cost savings of reduced commissions while still accessing essential services like inspections, title work, and legal support when needed. This approach works particularly well for sellers looking to "sell my home for less" without sacrificing professional guidance.

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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