How the recent settlement on paying a commission could change the way Americans buy and sell homes

A settlement announced by the National Association of Realtors on Friday, which ended its litigation with some homesellers, is expected to fundamentally change the rules around how Americans buy and sell their homes.

A settlement announced by the National Association of Realtors on Friday, which ended its litigation with some homesellers, is expected to fundamentally change the rules around how Americans buy and sell their homes. But while the changes will be sweeping, when the $418 million settlement goes into effect in July after court approval, several aspects will remain familiar. Commissions aren’t disappearing — you’ll still need to pay a real estate agent for their work, just as you would any service provider. And the commission, which is set between an agent and the seller, will continue to be negotiable. The seller’s agent will also still be able to split the commission with the agent bringing the buyer. Here’s what the changes mean for you. The agreement effectively will destroy the rules that many critics say are among the reasons driving housing prices artificially higher. The new rules are likely to be fairer for home buyers and sellers who’ve been saddled with the most unaffordable housing market in a generation. One new rule prohibits agents’ compensation from being included on listings placed on local centralized portals known as multiple listing services, which critics say led brokers to push more expensive properties on customers. Another ends requirements that brokers subscribe to multiple listing services — many of which are owned by NAR subsidiaries — where homes are given a wide viewing in a local market. Another new rule will require buyers’ brokers to enter into written agreements with their buyers.