Real estate in the United States rarely makes headlines for sudden changes, but the past year has been an exception. A settlement involving the National Association of Realtors (NAR) transformed how buyers and sellers handle commissions. For decades, people accepted a standard 6% fee as the cost of doing business. Now, that assumption is gone.
Instead of sellers being required to cover both sides of an agent’s commission, today the rules allow flexibility. Buyers can negotiate directly, sellers can decline to pay the buyer’s agent, and flat-fee services are making traditional commissions look outdated. As a result, buyers and sellers across the country are finding new ways to save thousands of dollars.
How the NAR Settlement Reshaped the Market
The August 2024 settlement forced a reckoning in the industry. The agreement followed claims that the NAR had engaged in anticompetitive practices, something the association strongly denies. Yet the outcome introduced transparency that did not exist before.
Under the new system:
1. Sellers are no longer required to pay the buyer’s agent, unless they desire to.
2. Commissions are fully negotiable between all parties.
3. Buyers and sellers are exploring creative arrangements that benefit their bottom line.
For everyday home buyers, the ability to question commission rates is no small matter. In high-priced markets, even a 1% shift can mean tens of thousands of dollars.
A Buyer’s Rebate That Paid Off
Maryland resident Michelle Milburn decided to test these new rules when she purchased her fourth home. Rather than hiring a traditional agent, she turned to SAVE6, a real estate service that offered a buyer’s rebate. The company handled contracts, negotiations, and closing paperwork, while also splitting its commission with her.
The result? Both Milburn and her agent received $4,100 each. In past years, this outcome would have been nearly impossible. Now, buyers like Milburn are asking a clear question: why pay the old rate when better options exist?
Industry experts agree that this is the new reality. As one real estate researcher noted, consumers now recognize that commissions are negotiable and that they hold more power than ever.
Negotiating in a Slower Housing Market
After the settlement, commissions briefly dipped but soon climbed back. A Redfin report explained that slowing housing markets led many sellers to increase payments to buyers’ agents to attract offers. Still, the larger trend shows that buyers and sellers are not passively accepting old practices.
Redfin agent Andrew Vallejo pointed out that commission discussions have become central to every deal. Sellers often attempt to lower rates, while buyers push for rebates or alternative fee structures. In many cases, buyers remain firm, especially in markets where homes linger longer on the market.
Flat Fees That Change the Game
The Seattle-based couple Alyse and Chris Ginter discovered how powerful the new rules could be. When they relocated to San Diego, they hired a buyer’s agent named Kevin Kretzmer from TurboHome. Instead of collecting a 3% commission, Kretzmer offered a flat fee of $15,000.
The Ginters wanted a $4.7 million home, but the sellers resisted lowering their price. What tipped the balance was their willingness to cover their own agent’s fee directly. This raised the sellers’ profit and won the Ginters the house.
By avoiding a traditional percentage commission, the couple saved an estimated $97,000. Their case highlights why flat-fee services are gaining momentum across the country.
Rebates Offer New Incentives
It is legal for buyers in 42 states and Washington, D.C., to get rebates from their agents. Virginia homeowner Steve Busch took advantage of this approach. Busch had long experience with buying and selling homes but disliked the idea of paying large commissions.
SAVE6 again became the answer. By offering him half of the buyer’s agent fee as a rebate, the company gave him exactly what he wanted: a responsive service without bloated costs. Busch’s case underlines how rebates and flat-fee structures can fit different needs while still protecting clients.
Sellers Find Their Own Savings
Not only buyers are benefiting. Sellers are also finding ways to protect profits when they move. In Yuma, Arizona, homeowner Brittney Vella faced the challenge of selling a house just 18 months after buying it. With limited equity, a traditional 6% commission would have erased her financial gain.
Instead, she chose Ridley, a flat-fee listing service. For just $1,000, her home appeared on multiple-listing services with maximum visibility. Because Vella had real estate marketing skills, she created her own photography and videos, saving hundreds more.
The final sale closed without either side hiring a traditional agent. Vella contributed to the buyer’s closing costs but kept nearly $19,000 that would have gone to commissions. Her approach shows how sellers are just as capable of reshaping the game.
A Growing Cottage Industry
The shake-up has fueled a wave of new businesses designed to meet modern demands. From full-service brokers offering rebates to tech-driven flat-fee platforms, the variety of models is growing.
Consumer advocates argue that many low-commission agents deliver the same level of service as traditional firms, often at a fraction of the cost. For buyers and sellers watching every dollar, that claim has never been more appealing.
What These Shifts Mean for Buyers and Sellers
The first year after the settlement reveals several important takeaways:
1. Negotiation is standard – Commissions are no longer fixed, and consumers are learning to bargain.
2. Flat fees are practical – More buyers and sellers choose predictable, affordable costs over percentages.
3. Rebates add incentives – Returning part of the agent’s commission makes the process more attractive.
4. Transparency matter – Buyers and sellers now see the real cost of representation.
This landscape continues to evolve, but one fact is clear: traditional 6% commissions are losing their grip on the industry.
Looking Ahead in Real Estate
Real estate deals will always involve stress, paperwork, and negotiation. Yet the financial picture now looks far brighter for buyers and sellers who stay informed. By asking questions, exploring flat-fee services, and pushing for rebates, everyday people are saving thousands of dollars.
The settlement with NAR marked the start of a new era. One year later, evidence shows that many consumers are ready to take charge. Whether purchasing a starter home or selling a luxury property, the ability to control commission costs empowers people in ways that once seemed out of reach.