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Settlement's Effects on Residential Transaction Volumes Under Review

Examining settlement's influence on residential transaction volumes reveals critical insights into real estate market dynamics. Delays and process changes affect buyer behavior and sales activity

flareAI Services

04 Dec 2025 — 6 min read

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In March 2024, the U.S. real estate landscape shifted dramatically when the National Association of Realtors settled for $418 million to resolve antitrust lawsuits, upending decades-old commission practices. This landmark agreement banned listing commission rates for buyer's agents and mandated explicit compensation agreements between buyers and their agents. For homeowners in Holland, Michigan, aiming to sell their home for less, or first-time buyers in Florida wondering where to start with home buying, this change prompts a critical question: how will the settlement reshape residential transaction volumes? The answer lies at the intersection of cost, choice, and innovation, with platforms like Side Door leading the charge in empowering consumers.

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!

A New Era for Commissions

In 2023, 4,090,000 existing homes changed hands nationwide, per the National Association of REALTORS®. New single-family home sales, meanwhile, reached a seasonally adjusted annual rate of 619,000 in May 2024, according to the U.S. Census Bureau. These numbers anchor a market now grappling with a restructured commission model. Historically, sellers covered commissions for both their agent and the buyer's, typically 2.5 to 3 percent each, totaling 5-6 percent of the home's value. The settlement disrupts this norm, requiring buyers to negotiate their agent's fees directly, a change that could lower costs but introduces new complexities.

For independent buyers and sellers, this shift is a double-edged sword. On one hand, it offers potential savings; on the other, it demands greater financial clarity. Enter Side Door, a U.S.-based real estate tech platform that streamlines Michigan real estate transactions with transparent pricing and guided workflows. Unlike traditional brokerages, Side Door allows users to select à la carte services think contract reviews or home staging without committing to full-service agents. This resonates in regions like West Michigan, where homeowners prize control and cost efficiency.

Impact on Transaction Volumes

The settlement's effect on transaction volumes depends on several dynamics. Lower commissions could spur more listings, especially for FSBO sales, which are gaining traction in Michigan. As U.S. News reports, the new rules may not drastically reduce costs immediately, but they empower buyers to negotiate, potentially increasing affordability. In 2023, despite economic pressures, millions of homes were sold, suggesting a resilient market. If commissions drop, as some analysts predict, more sellers might enter the market, boosting transaction volumes.

Yet, challenges loom. The Federal Reserve notes that some agents, facing reduced earnings, may exit the industry, potentially shrinking the pool of professionals available to facilitate deals. This could temporarily dampen transaction volumes, particularly in competitive markets like Florida. Platforms like Side Door counter this by connecting users with vetted professionals lenders, inspectors, and title companies who can step in where traditional agents once dominated. In Holland, where community trust is key, this model fosters direct, transparent relationships between homeowners and service providers.

Still, the transition isn't seamless. One objection to startups like Side Door is their less polished websites compared to established competitors like Real Estate One or West Edge Realty, which invest heavily in marketing. Homeowners searching “get more leads for my real estate business” expect intuitive platforms, and Side Door's hands-on industry expertise must be paired with user-friendly design to compete. The settlement, however, levels the playing field by encouraging innovation, potentially driving more transactions through tech-driven solutions.

Opportunities for Agents and Professionals

For real estate agents, the settlement is a wake-up call. The traditional model guaranteed steady commissions, but the new rules favor adaptability. Side Door's platform allows agents to offer specific services, enabling them to tap into deals they might otherwise miss. This à la carte approach appeals to clients who want tailored support without the full-service price tag. As Clever outlines, buyers and sellers can now negotiate commissions strategically, focusing on services that match their needs.

Other professionals benefit too. Title companies, lenders, and inspectors can showcase their expertise directly to consumers, moving beyond the shadow of traditional brokerages. In West Michigan, where personal connections matter, this transparency builds trust. Side Door's presence on social media platforms like Instagram and YouTube amplifies this, letting professionals share insights and engage with potential clients. For instance, a lender could post a video explaining closing costs, directly addressing those searching “where to start in real estate.”

Competitors, however, remain formidable. Established brokerages leverage robust marketing to maintain visibility, a hurdle Side Door must overcome. The objection that full-service agents have an easier path to clients is valid, but the settlement shifts the focus to value-driven services. By offering flexibility and transparency, Side Door positions agents and related professionals to thrive in this new landscape.

Navigating Risks and Misconceptions

The settlement has sparked misconceptions, such as the idea that agents now work for free or that commissions are universally lower. As Realtor.com clarifies, fees still vary by region and market conditions. In Florida, where competition is fierce, sellers may face fewer showings if buyer agent commissions are perceived as too low. Buyers, meanwhile, must budget for agent fees, which could deter some from entering the market. Side Door addresses this by offering clear cost breakdowns, helping users avoid surprises.

Hypothetically, consider a $300,000 home sale. Pre-settlement, a seller might pay $18,000 in commissions (6 percent split evenly). Post-settlement, a buyer negotiating a 2 percent agent fee could save the seller $3,000, but only if both parties agree. Such scenarios highlight the need for negotiation savvy, which platforms like Side Door facilitate through guided workflows. Still, the risk of fewer transactions persists if buyers or sellers hesitate amid the uncertainty.

The Road Ahead

The settlement builds on two decades of innovation, with platforms like Zillow and Redfin already democratizing property information. The Federal Reserve highlights how these tools have reduced reliance on traditional agents, a trend the settlement accelerates. In markets like Michigan and Florida, where Side Door operates, this could drive transaction volumes by empowering independent buyers and sellers. Yet, the industry must adapt to maintain momentum. Agents who embrace flexible models and tech platforms will likely see more opportunities, while those tied to old practices may struggle.

Looking forward, further changes may emerge. As Yahoo Finance notes, the settlement hasn't yet slashed costs significantly, but ongoing scrutiny of commission practices could lead to more reforms. Buyers and sellers should stay informed, perhaps by consulting resources like Side Door's platform or engaging with local experts in West Michigan or Holland. Regular updates to commission data and legal developments will be crucial, as the industry evolves rapidly.

A New Dawn for Homeownership

The $418 million settlement marks a turning point for real estate. For those in Michigan, Florida, and beyond, it's a chance to rethink how homes are bought and sold. Platforms like Side Door aren't just tech solutions they're a lifeline for homeowners seeking control, clarity, and savings. Whether you're pursuing FSBO sales in Holland or buying a home in Michigan, the tools to succeed are at your fingertips.

This new era rewards those who adapt. By blending digital innovation with real-world expertise, Side Door empowers users to navigate the complexities of real estate with confidence. The settlement may shake transaction volumes, but it also opens doors to a more transparent, flexible market. For homeowners ready to seize the moment, the future of homeownership is brighter than ever.

Frequently Asked Questions

How will the NAR settlement change real estate commissions for home buyers?

The National Association of Realtor's $418 million settlement requires buyers to negotiate their agent's fees directly, rather than sellers automatically covering both agent's commissions. This means buyers must now budget for agent fees separately and sign explicit compensation agreements before working with a buyer's agent. While this change offers potential savings through negotiation, it introduces new financial considerations that buyers need to plan for when purchasing a home in Michigan, Florida, or elsewhere.

Will the real estate commission settlement increase or decrease home transaction volumes?

The settlement's impact on transaction volumes is mixed and still unfolding. Lower commissions could encourage more sellers to list their homes, potentially boosting FSBO sales and overall market activity. However, some agents may exit the industry due to reduced earnings, which could temporarily dampen transactions in competitive markets. Platforms offering à la carte services and transparent pricing are helping to offset these challenges by connecting buyers and sellers with vetted professionals more efficiently.

What are the risks of the new commission structure for home sellers?

Sellers may face fewer showings if buyer agent commissions are perceived as too low, as agents might prioritize properties offering higher compensation. Additionally, sellers must navigate new negotiation dynamics and understand that they're no longer automatically covering buyer agent fees though they may choose to offer compensation to attract more buyers. Clear cost breakdowns and transparent pricing models can help sellers avoid surprises and make informed decisions about how to structure their listing in this evolving market.

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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