Real Estate News

Real Estate Agents Adapt to New Commission Rules

Real estate agents nationwide are adjusting their business models following new commission regulations. These changes impact how agents structure fees, market properties, and serve clients

flareAI Services

02 Oct 2025 — 6 min read

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The real estate market is undergoing a transformation that's hard to ignore. Picture a bustling open house in Holland, Michigan, where buyers and sellers are navigating a new reality: the rules around agent commissions have changed, and the stakes feel higher than ever. The NAR settlement, finalized on October 31, 2023, has upended decades of tradition, forcing agents to rethink how they work and clients to reassess what they pay. For markets like Michigan and Florida, where housing demand thrives, this shift is both a challenge and a chance to innovate. Platforms like Sidedoor are stepping in, offering a fresh approach with a la carte services that let clients cherry-pick what they need. But what does this mean for the average homebuyer or seller? Let's dive into how real estate agents are navigating new commission rules in 2025.

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Unpacking the New Commission Rules

The Burnett v. National Association of Realtors lawsuit shook the industry to its core. The October 2023 ruling found the National Association of Realtors (NAR) and major brokerages guilty of a price-fixing scheme that kept commissions high often around 6% of a home's sale price, a rate notably steeper than in countries like Canada or the UK. As a result, sellers are no longer required to offer commissions to buyer's agents on Multiple Listing Services (MLS), a change that's reshaping transactions. According to US News, this means commissions must now be negotiated directly, often outside MLS platforms. Yet, Yahoo Finance notes that overall costs for buyers and sellers haven't dropped significantly, despite early optimism.

Misunderstandings are rife. Some believe agents now work for free, or that commissions are standardized across the U.S. Neither is true. Rates vary think 5-6% in West Michigan's competitive market or 4-5% in Florida's cash-heavy regions and are always negotiable. Realtor.com, a leading real estate platform with over 100 million monthly users as of 2021, clarifies that sellers can still offer to cover buyer's agent fees, but it's no longer automatic. This shift demands clarity, and startups like Sidedoor are helping by offering transparent, customizable service models.

Agents Adapt with Innovation

Real estate agents are pivoting fast. In places like Holland, Michigan, where lakefront homes fuel fierce competition, agents are breaking down their services into bite-sized offerings. Instead of a blanket 6% commission, a seller might pay $1,500 for a listing, $500 for marketing, or an hourly rate for contract reviews. Sidedoor's platform shines here, enabling agents to offer tailored packages while connecting with title companies, lenders like Lake Michigan Credit Union, and inspectors to streamline deals. This a la carte approach lets agents tap into transactions they might have missed under rigid commission structures.

Social media is amplifying these changes. Platforms like Instagram, TikTok, and YouTube are now go-to channels for agents to educate clients. In Michigan, local pros are posting reels on Instagram to explain commission negotiations, while Florida agents use YouTube to highlight cash-buyer-friendly markets. These platforms aren't just for show they're building trust by demystifying costs for everyone from first-time buyers to seasoned investors.

Technology is another equalizer. Virtual tours, digital offer tools, and negotiation platforms are helping smaller firms compete with industry giants. In West Michigan, brokerages like West Edge Realty leverage PropTech to offer cost-effective services, while Florida's Premier Lakeshore uses digital tools to attract lifestyle-driven buyers. This shift from big-budget marketing to smart tech is reshaping how deals get done.

Regional Shifts: Michigan and Florida

In West Michigan, the housing market is a pressure cooker. Holland's charm think tulip-lined streets and Lake Michigan views drives demand, but inventory is tight. Agents are adapting by offering flexible packages. A seller listing a $400,000 home might pay $2,000 for a listing and skip full-service staging, saving thousands. Sidedoor's platform makes this possible, letting agents pitch modular services to clients who want control over costs.

Florida's market, with its influx of retirees and cash buyers, demands a different approach. In high-end markets like Naples, agents are using Sidedoor to offer targeted services like $500 for inspection coordination or $300 for contract reviews. This flexibility appeals to buyers who don't need full-service support but value expertise. Smaller firms, like Chicago Title's Holland office, are also benefiting, using PropTech to coordinate seamlessly with lenders and inspectors, rivaling bigger players like Real Estate One.

These regional differences highlight a broader trend: consumers now have more choice. A Michigan couple selling a $300,000 home could save $6,000 by negotiating a 4% commission instead of 6%, as suggested by List With Clever. In Florida, cash buyers can skip unnecessary services, cutting costs further.

Navigating Challenges

The new rules aren't without hurdles. In Michigan, some buyers worry that agents might skip listings with low or no commission offers, reducing their options. Sellers, too, fear that lower commissions could mean less agent effort, potentially limiting their home's exposure. Realtor.com notes that these concerns vary by market but aren't universal.

For startups like Sidedoor, perception is a challenge. Prospects often point to its newness, wanting a more polished website to rival established platforms. Big players with hefty marketing budgets still dominate visibility, making it tough for newcomers to break through. And while Sidedoor's a la carte model is innovative, full-service brokerages argue their comprehensive packages offer more value, especially for first-timers navigating complex deals.

Seizing Opportunities

Despite the challenges, the NAR settlement opens doors. Greater transparency could rebuild trust in an industry often seen as opaque. Sidedoor's model lets agents tap into niche deals like representing cash buyers who only need closing support while title companies and lenders showcase their value directly to clients. For consumers, strategic negotiation is key. List With Clever suggests practical steps: ask for itemized fees, compare multiple agents, and clarify who pays what upfront.

The data backs this up. A seller in Michigan negotiating a 4% commission on a $300,000 home saves $6,000 compared to 6%. In Florida, buyers skipping unnecessary services can shave thousands off closing costs. Platforms like Sidedoor make these savings accessible by connecting clients with professionals who prioritize collaboration over competition.

Looking Ahead

Industry experts predict a client-driven future. Over the next 3–5 years, agents will lean into customized services, with PropTech platforms like Sidedoor bridging the gap between traditional practices and consumer expectations. Analysts at Michigan Venture Capital Association see startups driving innovation by connecting agents with niche opportunities. Some anticipate further commission reforms, especially in high-cost markets like Florida.

For buyers and sellers, the advice is clear: stay informed, negotiate confidently, and leverage digital tools. Sidedoor's menu-like approach could set the standard, letting clients pick services that fit their needs and budgets.

A Shifting Landscape

The real estate industry is at a turning point. The NAR settlement has dismantled old norms, replacing them with a system that's both flexible and complex. Trusted agents, backed by platforms like Sidedoor, are navigating this shift with innovation offering tailored services, embracing technology, and prioritizing transparency. For consumers, the opportunity is real: ask questions, compare options, and take control of your costs. As 2025 unfolds, those who adapt whether agents rethinking their approach or homeowners mastering negotiation will shape the future of real estate.

Frequently Asked Questions

How have real estate commission rules changed after the NAR settlement?

The NAR settlement finalized in October 2023 eliminated the requirement for sellers to offer commissions to buyer's agents on Multiple Listing Services (MLS). Now commissions must be negotiated directly between parties, breaking away from the traditional 6% standard rate. While sellers can still choose to cover buyer's agent fees, it's no longer automatic, giving both buyers and sellers more control over commission negotiations.

Are real estate commissions actually cheaper now with the new rules?

Despite early optimism, overall costs for buyers and sellers haven't dropped significantly yet. However, there are opportunities for savings through negotiation - for example, a Michigan seller could save $6,000 by negotiating a 4% commission instead of 6% on a $300,000 home. The key is that commissions are now more flexible and negotiable, with agents offering à la carte services that let clients pay only for what they need.

What are à la carte real estate services and how do they work?

À la carte real estate services allow clients to choose and pay for specific services rather than a full-service package. For example, a seller might pay $1,500 for just a listing, $500 for marketing, or an hourly rate for contract reviews instead of a blanket 6% commission. Platforms like Sidedoor are enabling this approach, connecting clients with agents who offer modular services tailored to individual needs and budgets.

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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