Real Estate Commissions: What Homebuyers Need to Know

Justin Lopez April 1st, 2024

In March, a significant change occurred in the real estate industry that may have potential implications for future homebuyers.

The National Association of Realtors, an organization that represents over 1.5 million real estate agents, agreed to reconfigure their traditionally maintained fee structure. For decades, realtors were paid around 5-6% of the total sale price of a property.1 However, this restructuring will likely align fees more accurately with real estate agents’ services.

Some experts speculate that we could see a “decoupling” of commissions, traditionally shared by the seller and the buyer’s agent, leading to decreased prices over time.1 It’s also possible buyer agents may begin seeking compensation directly from their clients, creating an entirely new dynamic within the industry.

I hope this information offers some insight into this change. Please remember that each real estate transaction is unique and this updated fee structure may present both opportunities and challenges ahead.

1ABC News, Mar 18, 2024. “Rules that helped set real estate agent commissions changing. What you need to know.”

Read More By Justin Lopez, AIF®

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Investment advisory services are offered through Concord Wealth Partners, an SEC Registered Investment Advisor.

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