What the Real Estate Commission Changes
Mean for Sellers

Find out how buyers now negotiate and decide their agent's fees and how the correct pricing, preparation, and negotiation can up sellers’ sales.

One of the hottest real estate topics is the recent commission lawsuit and its impact on home sales. I’ve always been asked, “What’s happening in your business? What changes are you seeing with this whole commission lawsuit?” Now that we’re about two weeks into these significant changes, I want to share what we’ve observed and how it affects sellers like you:

Buyers now determine their agent’s fees. Sellers can no longer directly pay a buyer’s agent commission. Instead, buyers now hire their agents and decide what to pay them—similar to hiring an attorney. You choose your agent, negotiate their fees, and find someone whose cost and services align with your needs. Real estate transactions are moving in this direction.

How has our recent listing performed under the new rules? We've adapted quickly to these changes and want to share a recent success story highlighting this new approach. Our listing at 26772 Marino Circle in Mission Viejo, priced at $1,399,000, is a great example. After preparing the home for the market, we received five offers driven by strong buyer interest, resulting in a sale well above the asking price. All five offers requested a concession to cover the buyer’s agent commission. While sellers can no longer pay this commission directly, they can still offer concessions to help buyers manage these costs—precisely what happened here.

“The recent commission changes mean sellers can no longer pay a buyer’s agent directly,
but concessions can still close deals.”

What does this mean for sellers? Over the last two weeks, we've noticed that sellers’ net earnings remain roughly the same. Many are open to offering concessions if the offer is firm. For example, the Mission Viejo property sold well above the list price and covered the commission amount. The seller was thrilled with the outcome.

Why are buyers still asking for concessions? With buyers often putting down 25% to 30% on a property, finding additional funds to cover agent fees can be challenging—sellers who refuse to consider offers with concessions risk losing out to more flexible competitors.

How should sellers navigate this new landscape? Position your property strategically—with the correct pricing, presentation, and preparation. The goal is to attract multiple offers, as we did with our recent listing, and then negotiate the terms, including concessions for the buyer’s agent commission. If you receive an offer without a concession request, that's even better—it could save you tens of thousands of dollars.

Managing these changes might feel challenging, but it’s also a golden opportunity to sharpen your sales strategy and boost your profits. With a top-notch approach— smart pricing, eye-catching presentation, and being flexible at the negotiation table—you can use this evolving market. We've seen repeatedly that even with the new commission rules, sellers can still hit it out of the park. Let’s team up to position your property for maximum impact and turn these new dynamics into your secret weapon. Ready to turn your home sale into a success story? Call me at (949) 835-4713, and let’s make it happen.