CHARLOTTE, N.C. — A new settlement may change commission rates for real estate agents moving forward.
For decades, the National Association of Realtors (NAR) has required brokers to provide an offer of compensation to buyers agent up front. That usually comes to about 6%, split between the sellers and buyers agents. Some are saying the association is responsible for making that 6% commission rate standard.
A $418 million settlement is about to change the game when it comes to commission for real estate agents. Sellers would no longer have to make a compensation proposal to prospective buyers and their agents.
Some are saying that so-called standard 6% commission set by the NAR will go away -- but has it always been 6%? The WCNC Charlotte Verify team looked into it.
THE QUESTION
Does the NAR set commission rates?
THE ANSWER
No, the NAR does not set these commission rates. They have always been negotiable.
THE SOURCES
WHAT WE FOUND
"The NAR does not set commissions, and they are negotiable," the NAR said in a statement. "The rule that has been the subject of litigation requires only listing brokers to communicate an offer of compensation. That offer can be any amount, including zero."
According to the NAR policy, the boards and association do not control, recommend or suggest the commissions or fees charged to real estate brokerage services.
Hoffman said agent commissions have always been negotiable and that there is not one set commission by law. He also said sellers have always been able to negotiate if they want the buyer to pay their agent's commission.
"I do see about 1 in 10 sellers saying I'm not going to pay a buyer's agent," Hoffman said.
Contact Meghan Bragg at mbragg@wcnc.com and follow her on Facebook, X and Instagram.
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