For decades, home sellers have operated under the assumption that they need to budget 6% of their home’s value for real estate commissions. But where did that number come from? And does it still apply today?
The commission model is shifting, fast and sellers who understand the change stand to save tens of thousands.
What Is (and Isn’t) Required
In a traditional home sale, the 6% commission is split between the listing agent and the buyer’s agent, typically 3% each. But here’s the key: that structure is not required by law. It’s an industry habit, and one that’s now under pressure to change.
The recent lawsuit against the National Association of Realtors (NAR) and several national brokerages highlighted how sellers were pressured into offering compensation to a buyer’s agent in order to appear on the MLS. The lawsuit led to a $418 million settlement and new rules went into effect in August 2024 that remove that requirement.
So what does that mean for you as a seller?
You can now choose how much, if anything, to offer a buyer’s agent. And even more importantly you can skip the listing agent altogether if you’re confident using modern tools to manage your own sale.
Where the Real Savings Happen
Even if you offer a 2.5-3% buyer’s agent commission to keep your listing competitive, you can still save thousands by not hiring a listing agent to market the home for you.
Here’s a quick comparison:
Home price: $450,000
- Traditional 6% total commission: $27,000
- DIY approach with 2.5% buyer’s agent commission: $11,250
- Potential savings: $15,750
Those savings could be used for price flexibility, closing costs, or simply kept in your pocket.
What You Need If You Skip the Listing Agent
Going without a listing agent doesn’t mean going without support. Today, sellers have access to the same tools agents use, including:
- Photography, drone footage, and floor plans
- Listing pages optimized for mobile and QR code access
- MLS and syndication to Zillow, Redfin, and Realtor.com (if needed)
- Lead capture forms and contact tracking
- Legal forms and optional closing support
It’s no longer about who has access it’s about who’s in control.
The Bottom Line
Commissions were never fixed, but the rules are changing. Sellers can now offer buyer incentives without automatically giving away 3% to a listing agent.
If you’re comfortable with basic tools and want to maximize your equity, the DIY route or hybrid approach is well worth exploring.