The real estate industry faced a major shake-up when the National Association of Realtors (NAR) introduced new rules that aimed to change how commissions are handled. Some experts predicted this would significantly lower costs for homebuyers, while others doubted any real impact. Now, as we enter 2025, it’s time to evaluate how these changes have actually played out.

What Changed?

In August 2024, the NAR implemented two key rule changes as part of a $418 million legal settlement:

  1. Buyer-Agent Agreements – Buyers now must sign an agreement with their agent before viewing homes. This ensures transparency about commission fees and who is responsible for paying them.
  2. No More Public Commission Listings – MLS databases no longer display commission offers to buyer agents. While meant to improve transparency, some real estate professionals argue it has made the process less clear for buyers and sellers alike.

The Reality Six Months Later

Despite initial predictions, commissions have remained largely unchanged, according to a recent Redfin study. In some cases, commissions for homes under $500,000 have actually increased. Experts suggest that while the new rules changed how commissions are discussed, they haven’t necessarily lowered them.

Summer Goralik, a real estate compliance consultant, stated, “If the intention was for sellers not to be paying buyers agents’ compensation, that’s a total fail. It’s continuing as is and just being repackaged in a different way.”

What This Means for Buyers and Sellers

  • Buyers: Expect more upfront conversations about commission fees and possibly having to pay your agent directly.
  • Sellers: While you’re not required to offer commissions, doing so may still be necessary to attract buyer agents.
  • Agents: Transparency is now more critical than ever, but some argue the new rules have made commission structures more difficult to navigate.

Final Thoughts

The NAR’s changes were intended to increase transparency and reduce costs, but many industry professionals believe they have had minimal real impact. If you’re planning to buy or sell a home in 2025, working with an experienced real estate agent who understands the new rules is essential.

Thank you to Samantha Delouya for that great article.

On a separate note

If you’re looking for a new place to eat in Central New Jersey, check out Cree Wine Company in Hampton, NJ (Exit 12 off Route 78). My husband and I have been there four times, and it never disappoints! It combines fine dining with a casual vibe, and the best seat in the house is by the fireplace in the lounge.

Founded by Chris Cree, New Jersey’s only Master of Wine, Cree Wine Company offers a unique experience for wine lovers. Inspired by Chris’ travels to wine regions around the world, the venue provides a fun, relaxed atmosphere to taste and learn about wines. 📞 908-200-7772 or Visit their website at www.creewine.com or follow them on Facebook and Instagram @creewinecompany or Email @ info@creewine.com.

I’ll be sharing more of my favorite spots weekly—stay tuned!

You can become a Compass client and take advantage of Compass One by calling or texting Courtney Orlando, Central & North Jersey REALTOR® at 732.921.1825.
www.CourtneyOrlandoGroup.com