For a long time, buying and selling a home in the United States would usually be like this: the seller would pay a commission that would be allocated by the buyer and the seller's agent, usually accounting for 5% to 6% of the sale price.

The predictability of this structure comes at a cost: the large fees of the agent in each transaction. At high housing prices, the agency fee is only one sales amount to tens of thousands of dollars.

Too many for people like Jim Xiao. "It seems that real estate agent fees are inherently expected and fixed," he said.

But after the strong National Association of Real Estate Agents settled the lawsuit in August, the rules of the game changed, agreeing to new policies on how agents compensate. The lawsuit was filed by a group of home sellers in Missouri who believe the association’s rules force them to pay too much.

Shaw said he personally experienced the frustration of the old rules of 2023, when he helped his parents buy two homes in Augusta, Georgia without a buyer’s agent. The houses are new buildings, Xiao attempts to negotiate a credit equivalent to 2.5% of the usual handed over to the buyer's agent because he does not use it. But to no avail - Listing agent Full 5% commission.

Xiao is a lawyer who believes the committee system will bring the wrong incentives to buyer's agents: the higher the price, the more money they make. "It seems to be a complete regression," Xiao said. “Your broker should represent you and try to help you get the best deal.”

So when he sold his apartment last year and bought a new home for his family, Shaw decided to do something different. He found an agent, and he would accept 1.5% of the commission to sell his apartment and cost $10,000 to help him buy a new home.

New regulations could shake real estate agents’ control over commission structure

As new regulations undergo some major changes nationwide, agreements like Shaw may become increasingly common.

Among them: The agent must notify the buyer and seller that their fees can be agreed upon.

The buyer must enter into an agreement with its agent to determine how its agent will pay, including if the seller does not pay the buyer's agent, the buyer will do so.

Finally, the quotes for agent compensation no longer appear in the online database of multiple listing services or MLS for listing houses.

These new rules create an opening ceremony for brokers who charge a fixed fee.

“Homebuyers and sellers almost feel trapped in a use agent rather than hiring an agent at a reasonable cost,” said Rob Luecke, CEO of ShopProp Realty, a flat fee broker operating in nine states.

Luecke said his goal is to eliminate commissions, or at least make them lower a lot of commissions, "and put electricity back where buyers and sellers really need it."

For high-end homes, the potential savings are eye-catching. ShopProp represents a buyer who bought a $10.2 million home in the country's most expensive zip code in Atherton, California.

Buyer's agents may typically rent a commission of 2.5% or $255,000 on the sale. Instead, however, the buyer himself received most of the money at a discount of $247,000 and paid ShopProp a flat fee of $7,995.

"That customer is very happy," Luecke said.

Fixed Fees & Commission Agents

Luecke said ShopProp's business grew by about 26% per year on average.

Since ShopProp sells much less per sale than traditional brokerage firms, their business is quantity-oriented. This means some limitations: Its “full service” package is for home sellers, with only two open houses. The higher “concierge” service provides a dedicated agent that coordinates tasks including repair, installment and cleaning. ShopProp also offers some services, such as listings on MLS, which are completely free.

However, traditional commission-based real estate agents say their higher fees are worth it because they offer a certain level of service and fixed expertise, while flat business brokers don’t. They also have to share some of the expenses with the brokerage firm, thereby reducing personal income.

Leanne Liang is a broker with Redfin from the East Bay area outside San Francisco, and even in a city, there are many "micro-markets" of housing, she said: "If you move out half a mile, it's a completely different market. So I think buyers can really experience an experienced agent from that location."

She advises that potential buyers and sellers should interview agents of traditional and graphic brokers to see what it feels comfortable.

“Selling a home in today’s tough market, she said, “It’s not just putting the house on the MLS and waiting for the offer to come in.” In a challenging market, I think that being an agent does work for salary. ”

So far, the broker's fees have not changed much

Despite the new rules, the Commission has not changed much since it came into effect nine months ago. New data from Redfin, based on thousands of transactions, shows that the average commission for the buyer’s agency committee in the first quarter of the year was 2.4%, which is slightly higher than when the new regulations came into effect, but is down from a year ago. (The data is based on sales of Redfin agents and transactions referring to partner agents, or transactions by buyers using a Bay Equity home loan owned by Redfin.)

However, in high-priced homes, the buyer's agency committee has declined. Home prices range from $500,000 to $999,999, from an average commission of 2.42% in the first quarter of 2023 to 2.29% in the same period this year. For homes over $1 million, the decline remains even bigger: from 2.36% in the first quarter of 2023 to 2.17% in the same period of 2025.

Xiao said he knew the concern that if you hire a low-priced agent, they might do less. "But throughout the process, she's great," he said. "She's doing everything, even more than what other real estate agents have done in the past."

And paying his agent a fixed fee, saving him $14,000 when he bought the house - he could use the money for the closing costs.

Xiao said you don't have to do a better deal like he did, "I think it really makes all consumers be told and confidently say, 'Hey, there are other options.'"