How the New Commission Rules Impact Home Sellers

See how new commission rules allow home sellers to accept stronger offers while paying less in agent fees.

What do the new commission rules mean for home sellers? There’s been a lot of talk about a major real estate lawsuit that changed how commissions work. If you’re like most sellers, you’re probably wondering if this means you’ll be paying more, less, or nothing at all.

I’ve been tracking these changes in real sales, and one thing is clear—buyers still expect their agents to be paid. The good news? Sellers now have more flexibility and can even keep more profit with the right strategy. Let’s dive into how you can make this work in your favor.

How commissions worked before. Before the lawsuit, sellers and their agents agreed on a commission that covered both the listing agent and the buyer’s agent. The amount for the buyer’s agent was listed in the MLS (Multiple Listing Service), so agents knew exactly what they’d earn for bringing in a buyer.

This system worked for years because it gave buyer’s agents a clear incentive to show homes to their clients.

How commissions work now. The lawsuit made one major change: sellers can no longer list a buyer’s agent commission in the MLS. However, that doesn’t mean sellers aren’t still covering commissions. The process is just handled differently now.

Instead of the commission being set upfront, buyers must negotiate how their agent gets paid. Many buyers ask sellers to help cover the cost through concessions. While the structure has changed, sellers are still often contributing to buyer-agent commissions, just in a more flexible way.

“Instead of the commission being set upfront, buyers must negotiate how their agent gets paid.”

How these changes affect sellers. Since this rule change, I’ve seen over 100 offers, and almost all of them included a request for the seller to help cover the buyer’s agent fee. Buyers still want their agents to be paid, and they’re including that cost in their offers.

The main difference now is that the amount is negotiable and gives sellers more control over how they handle it. So, if you’re selling your home, here’s how you can handle this new system in a way that benefits you:

1. Set clear expectations. Instead of waiting for buyers to ask, you can set a pre-determined concession amount and communicate that upfront. This keeps things clear and can make your listing more attractive.

2. Stay flexible with negotiations. Some sellers are leaving the commission open for negotiation. When buyers or their agents ask about it, they simply say, “Make a strong offer, and we’ll consider it.” This shifts the pressure on the buyer to make a competitive offer instead of expecting the seller to cover a set amount.

Sellers now have more control. Instead of automatically paying a set fee, you can evaluate each offer and prioritize those with lower or no concessions. Some sellers are even paying less than before by handling concessions strategically rather than as a standard rule.

If you're planning to sell, having a solid strategy is more important than ever. The right approach can help you gain more money, and an experienced agent can guide you to get the best deal. If you have any help or have questions, you can always give me a call at (949) 835-4713. I’m happy to discuss and figure out the best way to sell your home in this new market.