Proposed settlement over real estate commissions could shake up the industry, with mixed impacts for buyers and sellers

Typically, a seller pays a 5-6% commission to agents, who split it. But under a proposed settlement, commission rules will change after a lawsuit against the National Association of Realtors.

A group of homeowners sued, alleging antitrust violations and inability to negotiate commissions under NAR rules. To settle, NAR has agreed to abandon commission-related rules.

Commissions for sellers will likely go down, meaning more money for them. But buyers may now have to pay their agents, hurting some first-time buyers.

The settlement may weaken the dominance of NAR, a powerful trade group, allowing new compensation models to emerge and reducing NAR's lobbying influence.

While unintended consequences are possible, the changes will likely make buying/selling cheaper and transform an industry accustomed to longstanding NAR control.