When the National Association of Realtors (NAR) announced a landmark $418 million settlement in March 2024, the news sent shockwaves through the American real estate industry. For decades, the traditional 6% commission structure—where home sellers typically paid both their own agent and the buyer’s agent—had been a source of frustration for many. Critics argued that this system artificially inflated housing costs, embedding hefty fees directly into home prices and limiting true competition. The settlement, hailed as a game-changer, was designed to disrupt this model by prohibiting listing agents from offering compensation to buyer agents via multiple listing services (MLS), effective August 2024. The hope? That home buyers and sellers alike would finally see relief from high transaction costs, saving billions of dollars annually.
Now, as summer 2025 draws to a close, the reality looks far less transformative than many had predicted. According to data compiled by industry analysts and reported by outlets like Morning Brew and The Wall Street Journal, commissions remain stubbornly high, averaging between 5% and 6% in most markets. The much-anticipated savings for consumers simply haven’t materialized. This persistence of high fees, despite sweeping reforms, has left buyers and sellers questioning what, if anything, has truly changed.
One of the main reasons for this inertia is the emergence of creative workarounds. Rather than advertising a 3% buyer agent fee on the MLS, as was common before the settlement, many sellers now offer “buyer concessions” or closing credits—effectively mimicking the old commission splits in a new guise. As noted in posts on X (formerly Twitter), real estate professionals openly discuss these strategies as a way to bypass the new MLS restrictions while still incentivizing buyer agents. "Instead of paying the commission up front, we just offer to cover closing costs. It’s the same thing, just packaged differently," one agent wrote in a widely shared thread.
This practice, though technically compliant with the settlement’s rules, runs counter to the spirit of the reform. The intent was to foster real negotiation and transparency in how agents are compensated. Yet, as Morning Brew highlighted in April 2025, many buyers remain unaware that they can even negotiate commissions. The requirement for buyer agents to secure written agreements disclosing their fees upfront has seen spotty enforcement, and the information gap between consumers and seasoned agents remains wide. "Most people don’t realize they have a choice," said a finance influencer on X, echoing a sentiment felt across the industry.
Economic pressures have only made the situation more complex. With median home prices in 2025 hovering above $400,000, even small percentage-based fees translate into substantial dollar amounts. Agents, facing a slowdown in sales volume and the specter of shrinking incomes, have doubled down on their value proposition. They emphasize their market expertise, negotiation skills, and ability to navigate complex transactions—arguing that their services are worth every penny. The CNN Business coverage from the time of the settlement’s announcement predicted exactly this scenario: while the 6% standard might be officially dead, entrenched habits and economic realities would slow the pace of change.
For now, the real winners appear to be established brokerages with the resources to absorb legal and regulatory changes without slashing profits. The Urban Institute’s 2024 analysis suggested that, in the long run, the settlement could benefit lower-income buyers by making commissions more negotiable. But in the short term, it’s the big players who have managed to maintain their margins, while consumers see little immediate relief. "The deal could upend rules inflating commissions," The Washington Post reported in 2024, but as of August 2025, industry trackers show only a 0.5% average drop in commission rates nationwide.
Regulatory oversight also plays a significant role in this uneven landscape. States like California, which have adopted stricter interpretations of the settlement, have seen modest declines in fees. But nationally, the Department of Justice’s ongoing scrutiny has yet to force widespread compliance. In many regions, enforcement is patchy, and agents continue to find ways to protect their earnings. As The Wall Street Journal recently explored, theories abound as to why costs haven’t budged—from subtle forms of agent collusion to sheer buyer inertia.
Looking ahead, some experts remain cautiously optimistic. The settlement has paved the way for flat-fee and discount brokerages to gain traction, potentially injecting much-needed competition into the market. A WebProNews article from earlier this year suggested that savvy consumers could save up to $50,000 through aggressive negotiation, but achieving these savings requires a level of education and confidence that many buyers and sellers still lack. For the average consumer, the complexity of real estate transactions—and the anxiety of making a life-changing purchase—often leads them to stick with familiar, full-service agents, even if it means paying more.
The spring 2024 homebuying season, according to USA Today, showed little immediate change in commission rates. Buyers, already stretched thin by high mortgage rates and rising home prices, found themselves in a tough spot: under the new rules, they might have to pay agent fees out-of-pocket, a daunting prospect for first-time purchasers. Sellers, meanwhile, gained a touch more bargaining leverage but often opted for traditional agents to ensure a smooth transaction in a fiercely competitive market. "It’s a disruption to the model, but not to the costs," observed one industry insider in a post that resonated widely on social media.
So where does this leave the dream of more affordable home buying and selling? For now, it’s largely unfulfilled. The settlement’s full effects may take years to materialize, influenced by broader economic cycles, evolving legal interpretations, and the gradual spread of consumer education. As antitrust enforcements loom and new brokerage models gain momentum, the industry could eventually see the kind of transformation that was promised back in 2024. Until then, buyers and sellers must navigate a market where old habits die hard and real change, it seems, takes time.
Despite the headlines and high hopes, the American real estate commission structure remains stubbornly intact—a reminder that even the most sweeping reforms can struggle to overcome the weight of tradition and inertia.