Will new rules on buying homes save you money or cost you? Changes start Saturday

• Under new rules, sellers are no longer required to pay commission fees for both seller and buyer agents, which means buyers can shop around and negotiate for reduced fees
• Standard 5-6% commissions may be drastically reduced, home prices may drop
• Buyer agents must sign written agreements for buyers with full transparency over all costs and fees

As of Saturday, the rules for buying or selling a home will change.

That could be good for buyers, who might see the price of homes drop. It also could make things more complicated if real estate agents flee the industry because of it.

After the National Association of Realtors and four real estate brokerage firms were hit with antitrust lawsuits accusing them of conspiring to keep commissions high, resulting in liabilities for nearly $2 billion in damages and a $418 million class action settlement, the NAR created new rules that could create an upheaval in how real estate agents make their money.

Americans pay about $100 billion a year in real estate commissions, according to a real-estate industry analyst with Keefe, Bruyette & Woods, at an average rate of 5-6% of the sale. That's among the highest rates in the world compared to buyers in other major countries who pay less than 2% on average, the Wall Street Journal reported.

With these changes, prospective homebuyers could save thousands of dollars. This is potentially a huge deal for both individuals and the housing market overall.

The new rules go into effect on Saturday, Aug. 17.

What are the real estate organizations accused of?

For many years, both the agent for the house buyer and the agent for the house seller were paid their commission or compensation fees by the seller out of the sale of the home. That generally ran around 5-6%, so in an average home sale in Florida (currently $418,000, according to The Motley Fool) the house seller could be paying as much as $25,000.

The home sellers in the class action suit against the National Association of Realtors — the largest professional organization in the U.S. — and four real estate brokerage firms, Re/Max, Anywhere Real Estate, Keller Williams Realty and Homeservices of America, alleged that the companies "conspired to require home sellers to pay the broker representing the buyer of their homes in violation of federal antitrust law” by including commissions in the prices in Multiple Listing Services (MLS) property listings.

That encouraged agents on both sides of the home sale to cooperate in their mutual compensation, the lawsuit said, and drive up their commission rates.

They also said such practices incentivized buyer's agents to avoid showing certain listings if they didn't feel the offered commissions were high enough.

A Missouri court found the NAR and brokerage firms liable for $1.8 billion in damages last November, and Re/Max and Anywhere settled out of court. NAR continues to deny wrongdoing but they settled in March and the court approved it in May.

How will buying or selling a house in Florida change?

Simply put, listing agents can no longer advertise commissions in MLS listings and real estate agents for buyers must sign written agreements with full transparency over all costs and fees.

While home sellers may still offer to pay the full commission fees as before, a seller could now elect to have each party pay its own agent instead and keep more of the sale money themselves. Buyers could shop around for agents offering lower commission rates or flat fees and could potentially negotiate their agent commission fees down.

Home prices themselves may drop as sellers no longer have to cover buyer agent fees.

An April report by the Consumer Federation of America estimated that in a competitive marketplace, agent commissions could drop from 20 to 50%, saving home buyers tens of billions of dollars a year.

Brokers are also no longer required to subscribe to multiple listings services.

Could the new real estate commission rules cost me money?

Some buyers may struggle to pay agent fees directly, whereas before those fees could be financed as part of their mortgage.

If you're a real estate agent yourself, you stand to make considerably less money per sale. That could result in reduced amenities for buyers such as fewer offers of home tours and less personal attention as agents try to make up the gap with more customers.

It could also lead to large numbers of real estate agents quitting, especially among smaller agencies.

Can I get money from the Realtor lawsuit settlement?

You may be eligible for money back if you sold a home in the last few years that was listed on a MLS service and paid a commission to any agent or broker.

There are several different settlements going on and your eligibility may vary based on when and where you sold a home. For homes sold in Florida, you must have sold a home:

• Between March 6, 2015, and Feb. 1, 2024, for the Anywhere and Re/Max settlements
• Between March 6, 2015, and Feb. 1, 2024, for the Keller Williams settlement

You don't have to have sold a home using Anywhere, Re/Max or Keller Williams to make a claim, but eligible sales through other services are limited to Feb. 1, 2020 through Feb. 1, 2024 (Anywhere and Re/Max settlement) or Oct. 31, 2019, through Feb. 1, 2024 (Keller Williams settlement).

If you sold a home outside of Florida, other date ranges will apply. You can find them at the settlement website's FAQ page. If you're not sure if you qualify, you can contact the Settlement Administrator at  888-995-0207 to find out.

How do I apply for a settlement in the real estate commission lawsuit?

You must submit a claim form by May 9, 2025 online at www.realestatecommissionlitigation.com. You can also print a claim form at the website and mail it to Burnett et al. v. The National Association of Realtors et al., c/o JND Legal Administration, PO Box 91479, Seattle, WA 98111, or email it to info@RealEstateCommissionLitigation.com.

If you sold multiple homes during the eligible period, you must submit a separate claim for each.

How much can I get from the Realtors settlement?

So far, the settlements for Anywhere/Re/Max and Keller Williams collectively have $208.5 million available. The proposal for how funds will be allocated has not been submitted to the court yet and payments may depend on how many people file a claim. Administrative costs will also be paid out of the settlement funds.