The 2024 NAR Lawsuit Actually RAISED Commissions — Here's Why

I heard quite a few homeowners celebrating the 2024 NAR Settlement. I heard them say they no longer had to pay commission and thought this was a victory that would lower commissions overall. The reality, however, is that commissions actually went up for many sellers. Here's how (watch it here or read on below):

Before the settlement, my sellers could advertise a 2% buyer's agent commission right on the MLS. Transparent, competitive, total commission paid when listed with me: 3%. At that time, many, if not most agents did not require a buyer agency agreement, so they largely just accepted whatever was offered. Now that's gone. Most buyers must sign a buyer agency agreement before an agent can even show them a home, and agents aren't setting their rate at 2%. They're setting it at 3%. If you could set your own salary, wouldn't you too? Of course.

So now when an offer arrives, it arrives at the top: 3%. Sellers can counter at 2%, but then the buyer has two choices: either pay the difference or counter for more seller-paid closing costs to offset it.

Did you catch that? Same money, different line item.

And if the seller says no, they risk losing the deal. Why? Because many Americans are credit-rich and cash-poor, and with housing prices so high, buyers often can't swing that additional cost.

Thus, the NAR lawsuit didn't lower commissions. It inadvertently raised them, and most people have no idea. There is still one clean way to control your listing-side cost: list it with listingsfor1.com. No hidden fees, full service, 1%. I hope you learned something new today!