Realtor Fees Remain Elevated Despite Reform Attempts

TheWkly Analysis

Following a landmark lawsuit settlement restricting open commission discussions on the MLS, many expected realtor fees to drop from the familiar 5%–6% range. Instead, commissions have hardly budged, as realtors simply shifted those fee negotiations off the MLS system. Consumer advocates hoped for transparency akin to international norms of 1%–3%, but entrenched customs and tight inventory keep the status quo. Buyers often remain unaware that sellers factor in buyer-side commissions. Some alternative brokerage models tout discount fees, yet they haven’t captured widespread market share. That leaves most consumers still paying substantial real estate commissions, reinforcing how deep-rooted practices can persist despite legal settlements.