Major Settlement Requires Real Estate Agents to Change Commissions, Could Lead to Lower Home Prices

A major antitrust settlement requires real estate agents to change how they are compensated, which could mean lower commissions and fees. This may put downward pressure on home prices.

Sellers can no longer advertise commission rates for buyer's agents on MLS listings. This makes it harder for sellers to argue that high commissions are an "industry standard."

The old system allegedly encouraged "steering," where buyer's agents would avoid showing homes with lower commissions. The new rules aim to prevent this.

The settlement is still new, so the impacts are theoretical. It may encourage lower flat fees for buyer's agents or more negotiation between buyers and their agents.

Over time, the changes could lead to lower commissions and transaction costs, more experienced buyer's agents, more homes on the market, and potentially lower sale prices. But the effects likely won't be immediate.