In August 2025, one year after the National Association of Realtors (NAR) reached a landmark $418 million settlement with plaintiffs aimed at reforming real estate commission structures, there has been little change in buyer’s agent fees. The settlement was intended to promote more transparent and direct fee negotiations, ultimately lowering costs for home buyers. However, as of the second quarter of 2025, the average commission paid to buyer’s agents has slightly risen from 2.38% to 2.43%.
The lack of significant change in commission structures, despite the settlement’s broad intentions, has sparked concern among consumers and industry experts alike. While the settlement was hailed as a major step toward reforming how real estate commissions work, it seems that industry practices have proven resilient in maintaining the status quo.
One of the primary reasons why commission rates have remained largely unchanged is the continued practice of seller-paid commissions. Many sellers, in an effort to attract more buyers to their properties, continue to cover the cost of the buyer’s agent’s commission. This longstanding practice, despite its purported drawbacks, has allowed the traditional commission structure to persist. Sellers see paying the agent fees as a way to entice buyers, making their property appear more attractive in a competitive market. This dynamic effectively shields buyers from having to negotiate fees or understand their full financial implications. Even with the possibility of negotiated rates, most buyers rarely engage in fee discussions, either due to a lack of awareness or a lack of understanding about the commission process.
Another factor contributing to the stagnation of commission fees is the current state of the housing market. In 2025, many housing markets are still facing challenges, including rising interest rates and weaker overall demand. In such conditions, sellers are often offering additional concessions to make their homes more appealing to potential buyers. These concessions—such as price reductions or offering to cover certain costs—indirectly support the traditional structure of agent commissions. In many cases, these concessions work to maintain or even increase the financial incentives for real estate agents. As a result, while buyers may expect lower overall transaction costs, they may not see those reductions in their agent’s commission fees.
Perhaps one of the most significant, but less discussed, reasons why agent fees remain unchanged is buyer behavior. Research shows that many buyers do not actively shop around for agents or try to negotiate fees. The overwhelming majority of buyers rely on the recommendation of family, friends, or other trusted sources when selecting an agent. This lack of active engagement with the commission process means that buyers are often unaware that they may have the option to negotiate these fees. Moreover, many buyers do not fully understand the commission structure, and as a result, they fail to challenge it, even when they are able to. This lack of consumer engagement in fee negotiation means that real estate agents face minimal pressure to alter their commission rates.
Despite these entrenched industry practices, the 2025 settlement did make some strides in increasing transparency within the industry. One of the key provisions of the settlement requires that agents now present signed agreements before home tours. This new requirement was designed to give buyers more clarity about the costs associated with hiring an agent and help them make more informed decisions. While this change has certainly introduced more transparency into the transaction process, it has not yet led to a dramatic shift in commission rates. This suggests that, even with more transparency, changing long-standing practices and consumer behaviors is a complex and slow-moving process.
In conclusion, while the $418 million settlement was a significant legal victory for those seeking reforms to real estate commission structures, the changes it has brought about so far have been limited. The continued prevalence of seller-paid commissions, the current state of the housing market, and buyer behavior have all contributed to the persistence of traditional commission rates. Although the settlement has brought more transparency to the industry, it has not been enough to overcome the deeply entrenched practices and limited engagement from buyers that continue to drive agent fees. As the real estate market evolves, it remains to be seen whether further reforms or changes in buyer behavior will eventually lead to a more substantial reduction in commission rates.
