Real Estate News

What Happened to Broker Commissions After the NAR Settlement

The NAR settlement transformed how broker commissions work in real estate. Buyers and sellers now face new rules about commission transparency, negotiations, and who pays agent fees in property transactions

flareAI Services

05 Dec 2025 — 6 min read

Quick Listen:

Podcast

The real estate industry, long a maze of fees and negotiations, faced a tectonic shift in 2024 with the National Association of Realtors (NAR) settlement. For homeowners in Michigan and Florida, this wasn't mere industry news it was a revolution in how homes are bought and sold. The settlement dismantled rigid commission structures, ushering in an era of transparency and choice. Whether you're listing a charming Holland cottage or eyeing a Florida beachfront condo, these changes affect your wallet and strategy. Here's how the NAR settlement is redefining real estate, with platforms like Side Door empowering homeowners to navigate this new landscape.

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!

Unpacking the NAR Settlement: A New Commission Era

In March 2024, the NAR settled lawsuits challenging the traditional 5-6% commission model, which was typically split between buyer and seller agents. The settlement eliminated automatic commission offers to buyer's agents via the Multiple Listing Service (MLS), meaning sellers no longer have to foot the bill for both sides. Instead, commissions are now fully negotiable, and buyers may directly pay their agents. This shift prioritizes transparency, forcing agents to justify their fees and giving homeowners more control.

The stakes are high in a massive industry. A Fact.MR analysis pegs the global real estate brokerage market at $241.3 billion in 2025, with a steady 1.0% growth rate. Yet, negotiable commissions are shaking things up, creating both savings and complexities. Platforms like Side Door are seizing this moment, offering transparent pricing and à la carte services think title work or inspections without the hefty full-service fees. This aligns with the settlement's push for flexibility, letting homeowners tailor their real estate experience.

Regional Impacts: Michigan and Florida Feel the Shift

The NAR settlement's effects ripple differently across regions. In Michigan, known for its affordable housing, buyers and sellers are rethinking costs. West Michigan, with its lakefront properties and tight-knit communities, is buzzing with sellers asking, “Can I sell my home for less?” In Holland, a $300,000 home sale could save $9,000-$12,000 by negotiating a 2-3% commission instead of 5-6%. That's enough for major renovations or a down payment elsewhere. Florida's competitive market, driven by retirees and vacation-home seekers, sees buyers pushing for lower fees, sometimes bypassing agents entirely.

Side Door's platform shines here, connecting users with vetted professionals like those at Premier Lakeshore or Chicago Title's Holland office. Sellers can pick specific services, avoiding the traditional one-size-fits-all model. In Florida, where speed and competition define the market, buyers are leveraging the settlement to negotiate directly with sellers, cutting costs. Yet, as a Yahoo Finance report notes, these changes haven't drastically slashed costs across the board negotiation skills are key.

Agents in Flux: Adapting to a Competitive Landscape

Real estate agents are under pressure to evolve. With commissions no longer guaranteed, they must prove their worth. In Michigan, firms like Real Estate One are emphasizing personalized service to justify fees. The settlement opens doors for agents to offer unbundled services staging, contract prep, or market analysis without requiring a full commission. Side Door's marketplace amplifies this, letting agents tap into deals they might have missed by offering specialized skills.

Challenges persist. Some agents fear lower commissions could reduce incentives to show certain properties, especially in Florida's cutthroat market. The U.S. real estate market, valued at $241.3 billion in 2025 with a sluggish 0.8% growth rate, is forcing agents to adapt or risk obsolescence. Social media, like Instagram and Facebook, is now critical for agents to showcase virtual tours and market expertise, aligning with Side Door's tech-driven approach.

Myths and Pitfalls: Navigating the New Rules

The NAR settlement isn't a cure-all. A common myth is that commissions are now universally lower. Not so fast market dynamics still drive fees. In Florida, top agents may still command premium commissions to secure listings in hot markets. Sellers also face risks: lower commissions might mean fewer showings if agents prioritize higher-paying properties. Buyers, meanwhile, often mistakenly believe agents now work for free. In reality, buyers may need to pay their agent's fee upfront, which can catch the unprepared off guard.

Side Door counters these challenges by offering clarity. Its guided workflows help users understand costs upfront, connecting them with professionals who prioritize client needs. For example, a Michigan seller can work with a title company like Chicago Title for closing or a lender like LMCU for financing, avoiding unnecessary fees. As Clever.com advises, negotiation is critical sellers should compare agent offers, and buyers should clarify fee responsibilities early.

Opportunities for Empowerment

The settlement hands buyers unprecedented leverage. In Michigan, where affordability draws first-time buyers, lower commissions can translate to better home prices. A buyer saving 1-2% on a $250,000 home could pocket $2,500-$5,000 significant in a budget-conscious market. Sellers gain flexibility, choosing only the services they need. Side Door's platform makes this seamless, linking users with inspectors, lenders, or agents for specific tasks, saving thousands compared to traditional models.

Real estate professionals also find opportunity. The settlement rewards those who adapt, offering specialized services to stand out. In West Michigan, an inspector might highlight expertise in lakefront property issues; in Florida, an agent could focus on hurricane-resistant home features. Side Door's marketplace connects these professionals with clients, fostering trust and efficiency. As US News reports, the settlement encourages innovation, pushing agents to embrace tech and transparency.

The Road Ahead: A Hybrid Future

The NAR settlement is a starting point. Ongoing legal challenges and tech advancements suggest commissions will grow even more flexible. Hybrid models blending digital tools with human expertise are emerging, with platforms like Side Door at the forefront. Buyers and sellers should prepare by researching local markets resources like Red Cedar Ventures offer Michigan-specific insights and using commission calculators, as suggested by Realtor.com, to estimate costs.

In 2025, the real estate landscape is dynamic. Side Door's transparent, user-centric approach empowers homeowners in Michigan, West Michigan, Holland, and Florida to take control. Knowledge is the new currency stay informed, negotiate wisely, and leverage tech to make the process yours.

Choice Defines the New Real Estate

The NAR settlement has shattered the old commission mold, giving buyers and sellers in Michigan and Florida unprecedented control. Challenges remain misconceptions and market pressures won't vanish overnight but the potential for savings and flexibility is real. Platforms like Side Door are paving the way, offering tools to navigate this transformed market with confidence. Whether you're selling a lakeside retreat in Holland or buying a sun-soaked Florida villa, the message is clear: seize the moment. Negotiate boldly, choose wisely, and embrace the future of real estate one defined by choice.

Frequently Asked Questions

How did the NAR settlement change real estate commissions in 2024?

The March 2024 NAR settlement eliminated the requirement for sellers to automatically offer commissions to buyer's agents through the MLS, making all commissions fully negotiable. This means sellers are no longer obligated to pay both their agent and the buyer's agent, and buyers may now need to pay their own agent's fees directly. The change dismantled the traditional 5-6% commission structure, giving both buyers and sellers more control over their costs.

Can I really save money selling my home after the NAR settlement?

Yes, but savings aren't automatic negotiation is key. In markets like Michigan, sellers can potentially save $9,000-$12,000 on a $300,000 home by negotiating a 2-3% commission instead of the traditional 5-6%. However, lower commissions might mean fewer showings if agents prioritize higher-paying listings, so it's important to balance cost savings with effective marketing strategy and choose services that meet your specific needs.

Do buyers have to pay their real estate agent directly now?

In many cases, yes. Under the new rules, buyer's agent commissions are no longer automatically included in the seller's costs, meaning buyers may need to pay their agent's fee upfront or negotiate for the seller to cover it. This catches many buyers off guard, so it's crucial to clarify fee responsibilities early in the home-buying process and factor agent costs into your budget potentially saving 1-2% (or $2,500-$5,000 on a $250,000 home) through careful negotiation.

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

You may also be interested in: Land for Sale Near Me: Rural Properties Gain Investor Interest