Skip to content
Understanding The Realtor Sales Commission Lawsuit Settlement

Understanding The Realtor Sales Commission Lawsuit Settlement

The real estate industry has recently experienced a seismic change due to the settlement of a groundbreaking lawsuit involving the National Association of Realtors (NAR). The outcome of the case has the potential to reshape the marketplace, affecting agents, sellers, and, indeed, the operation of real estate business across the United States.

Below, we explore some of the key questions surrounding the lawsuit and its implications.

Q&A on Realtor Sales Commission Lawsuit Settlement

What does this mean for real estate agents?

A: For real estate agents, the settlement means a substantial reduction in commission earnings by 30%. This adjustment will impact their income, potentially affecting their approach to selling properties and how they manage their finances. Realtors may need to increase their sales volume or diversify their service offerings to maintain their prior revenue levels.

What does this mean for home sellers?

A: Home sellers stand to benefit from this settlement, as the lowered commission structure could result in significant savings when selling their properties. This may encourage more homeowners to list their homes, thereby increasing market activity. The reduced cost could also provide sellers with more flexibility in pricing their homes to sell or to invest in property improvements.

What commission do real estate agents make in other countries, and how does it compare to the US?

A: Real estate commissions vary widely around the world. In countries like the UK and Australia, commissions tend to be significantly lower than in the US, often ranging between 1-3%. With the NAR's settlement resulting in a 30% reduction, US commissions may become more aligned with international standards, but they are still likely to be on the higher end comparatively.

What creative ways can real estate agents keep their incomes up?

A: To compensate for lower commission rates, real estate agents might consider specializing in niche markets, offering premium services, or investing in continued education to provide higher-value services to clients. Others may leverage technology to streamline operations and reduce expenses or focus on building a strong referral network to boost sales volume.

What types of marketing can help realtors save money?

A: Efficient marketing strategies, such as utilizing social media platforms for outreach and engagement, can be cost-effective for realtors. Additionally, leveraging virtual staging tools allows agents to present properties in the best light without the high costs associated with traditional staging. Virtual staging can create compelling visuals that attract potential buyers while saving on the expenses of hiring furniture or professional stagers. By adopting innovative real estate technologies and online marketing, realtors can not only save money but also extend their reach to a broader audience.


The settlement is a watershed moment in the real estate industry, prompting changes that will resonate with all players involved. Agents, sellers, and buyers must adapt to the evolving landscape. While it poses challenges for realtors in terms of income, it also opens up opportunities for innovation and new business models that align with the modern, tech-driven marketplace.

Virtually staged rustic luxury living room

Get Your Free Sample Scene

All new and potential clients receive a free staged photo for the listing they're interested in staging.

Learn More