The Commission Conversation: What Changed and What It Means for Sellers

These days, even a simple coffee order can come with a payment screen full of tip options: eighteen, twenty, twenty-five percent. It can leave anyone wondering what is normal anymore.

A lot of sellers feel that way about real estate commissions.

Since August 2024, the rules around how agents are paid have changed. Offers of compensation to buyer agents no longer appear on the MLS, and buyers now sign written agreements with their agents before touring homes. Commissions have always been negotiable, but now more sellers are asking questions, and that is a good thing.

Here is what sellers should understand:

Everything Is Negotiable. There is no standard commission set by law. Every agreement is between you and your agent.

Decide on Buyer Agent Compensation Strategically. Sellers can still choose to offer compensation to a buyer's agent. Doing so can widen your pool of buyers, especially buyers who cannot cover that cost on their own.

Judge Value, Not Rate. The right question is not "Who charges the least?" It is "Who will net me the most?" Pricing, marketing, and negotiation skill move your final number far more than a small change in commission.

The market is fair, but it is not forgiving. Understand the new rules so you can make choices that serve your bottom line.

Next week, I am going to share the "Price Reduction Spiral" and how to avoid chasing the market down.