Real Estate News

Realtor Commissions Edged Up Slightly One Year After Settlement

One year after the historic settlement, realtor commissions have edged upward. Explore the industry changes, market impacts, and what homebuyers and sellers should know about current commission rates

flareAI Services

04 Dec 2025 — 6 min read

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Last August, the real estate industry braced for transformation when the National Association of Realtors (NAR) settlement reshaped commission rules. The promise was bold: greater transparency, negotiable fees, and cost savings for buyers and sellers. Yet, one year later, the data paints a surprising picture commissions haven't dropped; they've edged up slightly. In Michigan and Florida, where markets thrive on distinct local dynamics, this shift sparks critical questions. Why are commissions rising, and how can platforms like Side Door empower homeowners to navigate this evolving landscape with confidence?

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The NAR Settlement: A New Era for Commissions

The NAR settlement, finalized in 2024, aimed to dismantle the traditional 5-6% commission model by mandating transparency in how fees are set and shared. The goal was to foster negotiation, giving buyers and sellers more control. However, a comprehensive market study reveals the U.S. real estate brokerage market, valued at $206.45 billion in 2025, is on track to reach $252.51 billion by 2030, growing at a 4.11% CAGR. This growth suggests commissions aren't shrinking as anticipated instead, they're inching upward in some areas. Agents are emphasizing specialized services, from advanced marketing to detailed market analysis, to justify their fees in this new regulatory environment.

In Michigan and Florida, where Side Door operates, this trend is pronounced. Sellers in West Michigan's Holland area, for example, report agents charging up to 6.5% to cover premium services like professional staging or virtual tours. In Florida's fast-paced coastal markets, agents are holding firm on rates, citing increased administrative burdens tied to compliance. The settlement's vision of lower costs hasn't fully taken hold, prompting buyers and sellers to seek smarter ways to manage expenses.

Michigan and Florida: Navigating Local Realities

Michigan's real estate market, particularly in West Michigan and Holland, blends charming lakefront properties with growing suburban hubs. Here, the slight commission increase reflects agent's efforts to differentiate in a competitive field. A Holland seller recently praised their agent's drone-powered open house, which drew multiple offers but came with a 6.5% commission higher than the pre-settlement norm. For FSBO (For Sale By Owner) sellers, this can feel like a financial pinch. Side Door addresses this by offering a la carte services, letting sellers choose specific needs like a $500 title service or a $200 listing package without committing to a full-service agent's fee.

Florida's market, by contrast, is a high-stakes arena. From Miami's luxury condos to the Gulf Coast's serene retreats, competition drives both opportunity and complexity. Post-settlement, some Florida agents have raised buyer-side commissions to 3%, citing extra paperwork to meet NAR's transparency rules. A Tampa buyer shared how their agent's fee crept above the expected 2.5%, reflecting the new compliance costs. Side Door's platform counters this by connecting users directly with vetted professionals lenders, inspectors, or title companies streamlining the process and cutting unnecessary expenses. This model resonates with keywords like “sell my home for less” or “buy a home in Michigan,” aligning with consumer demand for cost-effective solutions.

Challenges and Myths in the Post-Settlement World

The commission uptick brings challenges, especially for sellers in Michigan's rural pockets, where higher fees could deter price-sensitive buyers. Some agents, squeezed by negotiated commissions, may prioritize listings with higher payouts, sidelining budget-conscious clients. Misconceptions also abound. A Grand Rapids seller recounted seeing ads for “no-commission” services, only to discover hidden fees buried in closing costs. Side Door tackles this by prioritizing transparency, displaying all costs upfront so users can make informed choices without surprises.

Buyers face parallel hurdles. In Florida's sizzling market, some fear agents are less inclined to show properties with lower commission splits. The Urban Institute highlights that first-time buyers, less likely to negotiate, often bear the brunt of these changes. Side Door's guided workflows level the playing field, offering tools to compare rates and services, empowering users to avoid high-pressure sales tactics. This aligns with search trends like “where to start with home buying,” as newcomers seek clarity in a complex market.

Opportunities for Empowerment

Despite these challenges, the post-NAR landscape offers fresh possibilities. Side Door's innovative model offering a menu of services rather than a blanket agent contract is gaining momentum. In Michigan, a seller might hire a photographer for $200 and a title company for $500, bypassing the traditional 6% commission. In Florida, buyers are leveraging Side Door to connect with professionals who prioritize their needs, not the agent's cut. This flexibility dovetails with the settlement's push for choice, resonating with search terms like “get more leads for my real estate business” by connecting agents with motivated clients.

Real estate professionals are adapting too. Agents are showcasing niche expertise virtual tours, market analytics, or negotiation strategies to justify their fees. Title companies and lenders, traditionally disconnected from client's core needs, are partnering with Side Door to offer tailored services. This shift creates a win-win: agents gain access to deals they might have missed, while clients enjoy customized support. As the U.S. News reports, understanding these new dynamics is key to maximizing value in today's market.

Addressing Objections and Building Trust

As a startup, Side Door faces skepticism about its polished but still-developing platform. Some users, accustomed to competitor's sleek websites, hesitate to trust a newer player. Yet, Side Door's strength lies in its transparency and focus on user control, addressing concerns head-on. Competitors may dominate with heavy marketing budgets, but Side Door's lean, tech-driven approach offers a cost-effective alternative, aligning with searches like “michigan real estate” or “where to start in real estate.” By integrating with social platforms like Instagram and Facebook, Side Door amplifies its reach, engaging users where they're already active.

Another objection: competitors make it easy for full-service agents to dominate. Side Door flips this by empowering independent buyers and sellers, letting them cherry-pick services while connecting agents to niche opportunities. This model not only saves money but also builds trust by aligning with client's actual needs, as seen in partnerships with local firms like Chicago Title's Holland office.

A Path Forward for Homeowners

One year post-NAR settlement, the real estate industry is still adapting. Commissions may have nudged upward, but so have the tools to navigate this shift. In Michigan and Florida, where local markets pulse with unique challenges, Side Door's transparent, a la carte model is a game-changer. It empowers buyers and sellers to take charge, whether they're searching “sell my home for less” or “buy a home in Michigan.” A West Michigan agent summed it up: “The rules have changed, but so have the possibilities. It's about giving people the tools to succeed.” As the market evolves, staying informed and leveraging platforms like Side Door will be crucial. For homeowners, this isn't just a trend it's a movement toward smarter, more empowered real estate decisions.

Frequently Asked Questions

Did real estate commissions go down after the NAR settlement?

Surprisingly, commissions haven't dropped as expected they've actually edged up slightly in many markets. While the 2024 NAR settlement aimed to increase transparency and lower the traditional 5-6% commission model, agents are now emphasizing specialized services like professional staging, virtual tours, and advanced marketing to justify their fees. In Michigan and Florida, some sellers are reporting commissions as high as 6.5%, higher than pre-settlement norms.

How can I save money on real estate commissions in Michigan and Florida?

Platforms like Side Door offer a la carte services that let you choose only what you need, avoiding traditional full-service agent fees. For example, Michigan sellers can hire a photographer for $200 and a title company for $500 instead of paying a 6% commission on their entire home sale. This flexible approach gives buyers and sellers more control over costs while still accessing professional services like lenders, inspectors, and title companies.

Why are some real estate agents charging higher commissions after the NAR settlement?

Agents are citing increased administrative burdens from new compliance requirements and transparency rules mandated by the settlement. Many are also differentiating themselves by offering premium services such as drone-powered open houses, detailed market analysis, and sophisticated digital marketing to justify higher fees. In competitive markets like Florida's coastal areas and Michigan's West Michigan region, agents are holding firm on rates to maintain service quality while adapting to the new regulatory environment.

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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