Settlement Forces Real Estate Agent Commissions Lower, Bay Area Homebuyers and Sellers Could Save Tens of Thousands

The standard 5-6% real estate agent commission on home sales is likely ending soon per a settlement, which could mean major savings for buyers and sellers.

With commissions expected to drop by almost a third, buyers and sellers in the pricey Bay Area housing market could save tens of thousands in fees.

To justify commissions in the new environment, agents may need to provide more services or expertise. More flat fee or discounted rate options may emerge.

The settlement ends the practice of directing sellers to offer buyer agent commissions, which could give buyers more leverage to negotiate rates.

New startups see an opportunity to disrupt traditional agent commissions by offering flat fees or online platforms to automate parts of the home buying/selling process.