Seattle Real Estate News

A year has passed since a landmark legal settlement promised to disrupt the way real estate commissions are structured in the US, but home sellers say they are still feeling pressured to pay excessively high fees. The National Association of Realtors (NAR) had agreed to end a long-standing practice of sharing commission information privately among agents through MLS databases. The settlement aimed to increase transparency and competition, potentially lowering commissions historically set between 5% and 6%.

Here's how the settlement has impacted the industry since then: 

1. Shift in Commission Structure – Buyers must now negotiate and sign agreements outlining how much they will pay their agent, rather than relying on sellers to cover both agents' commissions. 
2. Impact on Mortgage Lenders – Lenders with lower margins may assist buyers and realtors in covering fees, creating a competitive advantage for those offering better rates or credits. 
3. Realtor Adaptation – Some realtors are struggling with the change, but more experienced professionals are benefiting by emphasizing their value to clients. 
4.  Changes to MLS Listings – Commission details are no longer displayed on Multiple Listing Services (MLS), requiring off-MLS negotiations for compensation. 
5. Challenges for Buyers – First-time buyers or those unfamiliar with the process may face added costs if sellers refuse to cover agent commissions, potentially increasing their financial burden. 

Overall Market Impact – While commissions may moderate, the settlement is not expected to significantly affect home prices or inventory, as interest rates and supply-demand dynamics remain the primary market drivers.