Death of the 6% commission

Apparently, the National Association of Realtors has agreed to eliminate rules on commissions.

“The NAR, which represents more than 1 million Realtors, also agreed to put in place a set of new rules. One prohibits agents’ compensation from being included on listings placed on local centralized listing portals known as multiple listing services, which critics say led brokers to push more expensive properties on customers. Another ends requirements that brokers subscribe to multiple listing services — many of which are owned by NAR subsidiaries — where homes are given a wide viewing in a local market. Another new rule will require buyers’ brokers to enter into written agreements with their buyers.”

Some predictions are that commissions will fall by 25-50%, which for a median priced home could save up to $6000. At the very least, this could force more competition among realtors.

We sold a house and bought a house in the summer of 2022. It was our second home purchase and first home sale, so I don’t have a personal context to place this in. Our first purchase was direct from the seller, who we knew, and we just hired an attorney to draw up a contract. We interviewed two agents to sell that house, and the one we hired did a good job and got a fair price. Our agents for the second purchase knew of a house in the neighborhood we wanted that was vacant but wasn’t listed, so in a red-hot market, we didn’t have to bid for it—in fact, we got it for $20K below the asking price. Of course, we wouldn’t have found it by searching the MLS ourselves.

End of the fixed realtor commission