For almost 100 years, real estate worked one way. Sellers hired an agent, that agent listed the home on the MLS, and the MLS required the seller's agent to offer a commission to the buyer's agent. The commission was split. Usually 5 to 6 percent of the sale price, half to each side. Nobody really questioned it.
Then a group of home sellers sued, and in 2024, the whole system got blown up.
If you're buying or selling a home in 2026, you're living in the aftermath. Here's what actually happened, what changed, and what it means for your wallet.
What was the lawsuit about?
The case was Sitzer/Burnett v. National Association of Realtors. A group of Missouri home sellers sued the NAR and several major brokerages, arguing that the industry's commission rules amounted to price-fixing.
Their argument, in plain English: the MLS required sellers to offer a buyer's agent commission. Sellers couldn't list a home without doing it. The commission was almost always 2.5 to 3 percent. There was no real negotiation. And even if you wanted to offer less, the other agents would just steer their buyers to houses with the higher commission.
In October 2023, a federal jury in Kansas City agreed. They found the NAR and two big brokerages liable for $1.78 billion in damages. With treble damages, that number jumped to over $5 billion.
The NAR settlement
Facing that kind of financial exposure, the NAR settled in March 2024 for $418 million. The settlement didn't just pay money. It required the industry to change how commissions work.
The changes went into effect in August 2024:
The MLS can no longer include offers of buyer's agent commission. Sellers can still offer commission, but it has to happen outside the MLS system.
Buyers have to sign a written agreement with any agent before the agent shows them a home. That agreement has to spell out the commission. It can't be vague. It can't just say "market rate."
Buyer and agent negotiate the commission up front. No more assuming it's 2.5 or 3 percent.
For almost 100 years, real estate worked one way. Sellers hired an agent, that agent listed the home on the MLS, and the MLS required the seller's agent to offer a commission to the buyer's agent. The commission was split. Usually 5 to 6 percent of the sale price, half to each side. Nobody really questioned it.
Then a group of home sellers sued, and in 2024, the whole system got blown up.
If you're buying or selling a home in 2026, you're living in the aftermath. Here's what actually happened, what changed, and what it means for your wallet.
What was the lawsuit about?
The case was Sitzer/Burnett v. National Association of Realtors. A group of Missouri home sellers sued the NAR and several major brokerages, arguing that the industry's commission rules amounted to price-fixing.
Their argument, in plain English: the MLS required sellers to offer a buyer's agent commission. Sellers couldn't list a home without doing it. The commission was almost always 2.5 to 3 percent. There was no real negotiation. And even if you wanted to offer less, the other agents would just steer their buyers to houses with the higher commission.
In October 2023, a federal jury in Kansas City agreed. They found the NAR and two big brokerages liable for $1.78 billion in damages. With treble damages, that number jumped to over $5 billion.
The NAR settlement
Facing that kind of financial exposure, the NAR settled in March 2024 for $418 million. The settlement didn't just pay money. It required the industry to change how commissions work.
The changes went into effect in August 2024:
The MLS can no longer include offers of buyer's agent commission. Sellers can still offer commission, but it has to happen outside the MLS system.
Buyers have to sign a written agreement with any agent before the agent shows them a home. That agreement has to spell out the commission. It can't be vague. It can't just say "market rate."
Buyer and agent negotiate the commission up front. No more assuming it's 2.5 or 3 percent.
What changed for home buyers
Before the settlement, most buyers had no idea what their agent was being paid. They just knew "the seller pays." The agent was effectively free, and buyers didn't shop or negotiate.
Now:
You know exactly what your agent will charge, because it's in writing
You decide whether to pay it yourself or ask the seller to cover it
You can negotiate
You can use a service like Homa that charges 1 percent and credits the buyer's-agent commission back to you at closing, saving real money
The transparency is the biggest change. Buyers can finally compare options, which is why commission-rebate brokerages like Homa have been growing fast. Once you see the actual dollar amount, paying 3 percent looks pretty steep.
What changed for home sellers
Sellers used to just accept the 5 to 6 percent total commission as a given. Now they're negotiating harder.
Listing commissions are more negotiable
Sellers can decide whether to offer a buyer's agent commission at all (though most still do, because it helps attract buyers)
When sellers do offer a buyer's agent commission, it's often 2 percent instead of 2.5 or 3
The average total commission has dropped from about 5.5 percent to around 4.8 to 5 percent across the country in 2026. That's billions of dollars per year that used to go to agents and now stays with buyers and sellers.
"Real estate commission lawsuit, how much will I get?"
A lot of people want to know what their settlement share looks like. The Sitzer/Burnett settlement was for home sellers, not buyers, and it covered sales going back years in specific markets.
Realistic expectations:
If you sold a home in a covered market between 2014 and 2024 through an NAR-affiliated brokerage, you may be eligible
Individual payouts are small, usually $10 to $100 per seller, though larger sales might get more
Claims had to be filed by specific deadlines in 2024 and 2025
If you were a buyer, you weren't part of this particular settlement. Other class actions are working through the courts that may address buyer-side damages, but nothing has been settled broadly yet.
Buy Smarter with Homa
Take control and save thousands on your path to homeownership
Buy Smarter with Homa
Take control and save thousands on your path to homeownership
Buy Smarter with Homa
Take control and save thousands on your path to homeownership
What buyer broker agreements now require under the new law
This is the part of the buyer broker agreement new law that directly affects anyone buying a home right now. Before an agent can show you a property, you have to sign a buyer broker agreement. The agreement must include:
The duration (how long you're committed)
The geographic scope (what area it covers)
The services the agent will provide
Exactly what the agent will be paid and by whom
Some agents are pushing buyers into long exclusive agreements (6 months, all-of-county) at 2.5 to 3 percent. Don't sign those without thinking. You have options:
Single-property or single-day agreements. Only covers one house or one tour. Perfect if you just want to see a place.
Short-term agreements. 30 to 60 days with a specific geographic limit.
Fixed-rate agreements. Instead of a percentage, you agree on a fixed dollar amount.
Exclusive right to represent. The most restrictive. Only sign this if you're fully committed to working with that agent and happy with the terms.
Read what you're signing. The agreement is legally binding. If you sign a 6-month exclusive at 3 percent, you owe that money even if you find a house on your own.
How to negotiate your commission terms
After the settlement, commissions are fully up for discussion. Some things you can negotiate:
The rate. You can ask for a lower rate or a fixed dollar amount.
Who pays. You can ask the seller to cover your agent in the offer.
Performance terms. Some agents are open to reduced commissions if they don't find you a home within a certain timeframe.
Rebates. If the seller pays more than your agent's fee, the difference can come back to you.
The key: ask. Before the settlement, the negotiating commission felt taboo. It's not anymore. Agents expect it now.
How Homa benefits from the new rules
The settlement basically created the conditions for different models to thrive. When commissions were hidden and assumed, nobody shopped around. Now that buyers see the dollar amount and have to sign an agreement, they're comparing.
Homa charges 1 percent of the purchase price, paid only at closing. You get a licensed agent, full service, offer writing, contract review, and closing support. Whatever the seller is offering as a buyer's-agent commission (and most still offer one) gets credited back to you at closing.
On a $500,000 home where the seller is offering a 2.5 percent buyer's-agent commission, that's $12,500 the seller is willing to pay. With Homa's 1 percent fee ($5,000), the remaining $7,500 is credited back to you. Cash at closing, or even better, rolled into a mortgage rate buydown that saves you $150 a month for 30 years.
Before the settlement, this model was hard to grow because buyers couldn't see the value clearly. Now they can. It's why commission-rebate brokerages are eating market share from traditional agencies every quarter.
What happens next
The NAR settlement is just the beginning. Several related lawsuits are still moving through the courts. Expect to see:
More enforcement actions against specific brokerages
Additional buyer-side class actions
Continued downward pressure on commission rates
More tech-enabled and commission-rebate brokerages entering the market
Regulatory scrutiny of buyer broker agreements (some states are proposing new rules)
The industry isn't going back to the old model. Buyers and sellers have more information and more choices than ever before. The ones who learn the new rules save real money.
The bottom line
The commission lawsuit made visible what was always true: buyers were paying agents thousands of dollars without seeing the price tag. Now that the price tag is clear, smart buyers are asking whether the price matches the value.
For some transactions, paying a traditional commission still makes sense. For most, it doesn't. Commission rebates, and mortgage rate buydowns have turned what used to be a silent tax on every home purchase into a real opportunity for savings.
If you're buying in Florida or planning to buy in Texas, this is the moment to actually look at the numbers. The old way was expensive and hidden. The new way is transparent and negotiable. Use it.
What buyer broker agreements now require under the new law
This is the part of the buyer broker agreement new law that directly affects anyone buying a home right now. Before an agent can show you a property, you have to sign a buyer broker agreement. The agreement must include:
The duration (how long you're committed)
The geographic scope (what area it covers)
The services the agent will provide
Exactly what the agent will be paid and by whom
Some agents are pushing buyers into long exclusive agreements (6 months, all-of-county) at 2.5 to 3 percent. Don't sign those without thinking. You have options:
Single-property or single-day agreements. Only covers one house or one tour. Perfect if you just want to see a place.
Short-term agreements. 30 to 60 days with a specific geographic limit.
Fixed-rate agreements. Instead of a percentage, you agree on a fixed dollar amount.
Exclusive right to represent. The most restrictive. Only sign this if you're fully committed to working with that agent and happy with the terms.
Read what you're signing. The agreement is legally binding. If you sign a 6-month exclusive at 3 percent, you owe that money even if you find a house on your own.
How to negotiate your commission terms
After the settlement, commissions are fully up for discussion. Some things you can negotiate:
The rate. You can ask for a lower rate or a fixed dollar amount.
Who pays. You can ask the seller to cover your agent in the offer.
Performance terms. Some agents are open to reduced commissions if they don't find you a home within a certain timeframe.
Rebates. If the seller pays more than your agent's fee, the difference can come back to you.
The key: ask. Before the settlement, the negotiating commission felt taboo. It's not anymore. Agents expect it now.
How Homa benefits from the new rules
The settlement basically created the conditions for different models to thrive. When commissions were hidden and assumed, nobody shopped around. Now that buyers see the dollar amount and have to sign an agreement, they're comparing.
Homa charges 1 percent of the purchase price, paid only at closing. You get a licensed agent, full service, offer writing, contract review, and closing support. Whatever the seller is offering as a buyer's-agent commission (and most still offer one) gets credited back to you at closing.
On a $500,000 home where the seller is offering a 2.5 percent buyer's-agent commission, that's $12,500 the seller is willing to pay. With Homa's 1 percent fee ($5,000), the remaining $7,500 is credited back to you. Cash at closing, or even better, rolled into a mortgage rate buydown that saves you $150 a month for 30 years.
Before the settlement, this model was hard to grow because buyers couldn't see the value clearly. Now they can. It's why commission-rebate brokerages are eating market share from traditional agencies every quarter.
What happens next
The NAR settlement is just the beginning. Several related lawsuits are still moving through the courts. Expect to see:
More enforcement actions against specific brokerages
Additional buyer-side class actions
Continued downward pressure on commission rates
More tech-enabled and commission-rebate brokerages entering the market
Regulatory scrutiny of buyer broker agreements (some states are proposing new rules)
The industry isn't going back to the old model. Buyers and sellers have more information and more choices than ever before. The ones who learn the new rules save real money.
The bottom line
The commission lawsuit made visible what was always true: buyers were paying agents thousands of dollars without seeing the price tag. Now that the price tag is clear, smart buyers are asking whether the price matches the value.
For some transactions, paying a traditional commission still makes sense. For most, it doesn't. Commission rebates, and mortgage rate buydowns have turned what used to be a silent tax on every home purchase into a real opportunity for savings.
If you're buying in Florida or planning to buy in Texas, this is the moment to actually look at the numbers. The old way was expensive and hidden. The new way is transparent and negotiable. Use it.
