Real estate agents find workarounds as sellers struggle to negotiate lower fees
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%.
Yet homeowners like 39-year-old John Chambers from Colorado say little has changed. Chambers recently sought to sell his Boulder, Colo., home but grew frustrated after multiple agents insisted on a 5% commission rate, totaling around $137,500 for his property. Chambers ultimately decided to sell without an agent after finding no flexibility among the realtors he interviewed.
After listing his home independently, Chambers claimed agents actively discouraged potential buyers from engaging with him directly – a tactic he described as an aggressive pushback.
Meanwhile, despite industry assurances, commission rates appear largely unaffected by the landmark settlement. Independent surveys from Redfin and AccountTech suggested rates remain unchanged, though these findings carry potential biases. On the other hand, a general market survey indicated a slight downward trend.
Doug Miller, a Minnesota lawyer who initiated one of the first commission-related lawsuits, said the NAR settlement failed to fully address the deeper issue.
“The NAR settlement solves MLS steering. It did not solve steering,” Miller told The New York Times, adding that agents are finding new ways around the settlement, including the continued informal sharing of commissions outside MLS databases.
Stephen Brobeck, a senior fellow at the Consumer Federation of America, echoed concerns that real estate professionals quickly adapted to circumvent the intended effect of the settlement, maintaining high commission rates through subtle pressure tactics on homeowners.
Dallas-based realtor Jeremy Larsen acknowledged the industry changes have led some homeowners and buyers to question the value of real estate agents. But he warned that consumers risk losing significant financial value by navigating transactions without professional support.
“It’s like walking into a courtroom without an attorney. Why would you do that? There’s so many possible things that can go wrong.” Larsen said, stressing the importance of professional representation during complex transactions.
Social media videos from realtors have further stirred controversy, suggesting some agents actively avoid properties offering reduced or zero commissions. A widely circulated Instagram video from a Fresno realtor showed an agent eagerly steering toward a property offering a 3% commission while ignoring a property listed with no commission payout.
Read next: NAR clears up confusion over commission changes in updated FAQs
Troy Green, a spokesman for the NAR, strongly rejected claims that the organization condones any actions to evade the settlement’s terms.
"The National Association of Realtors is resolutely opposed to any attempt to circumvent the settlement," Green said.
However, Green admitted agents could legally discuss commissions outside the MLS system, an allowance critics argue weakens the settlement's intended impact.
In Oklahoma, realtor advocacy led the state legislature to mandate written disclosure of commission sharing among real estate agents, a law enacted with strong backing from the state's realtor association.
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