Real Estate Commissions and Competition in the Marketplace: What You Need to Know

| December 2, 2021

To improve transparency in real estate transactions, the National Association of REALTORS® announced proposed changes to its guidance for local Multiple Listing Service (MLS) broker marketplaces.

The changes seek to “ensure disclosure of compensation offered to buyer agents, ensure listings are not excluded from search results based on the amount of compensation offered to buyer agents, and reinforce that local real estate agents do not represent brokerage services as free,” according to a NAR statement.

The amount of compensation to be paid by the seller to the listing broker – and the amount of compensation to be offered by the listing broker to the MLS member who finds a buyer for the property – should always be the subject of discussion between the seller and the listing broker. Commissions should always be determined on an individual basis. Any agreement amongst competitors either on amounts of commission or the offer of compensation is strictly prohibited, and directly contrary to NAR and MLS policy.

See NAR’s MLS Antitrust Compliance Policy available here:  Policies: MLS Antitrust Compliance Policy

It’s important that all REALTORS® continue to make it clear to consumers that real estate commissions are always negotiable and depend on a number of factors, which can include (but are not limited to) market conditions, type of representation and types of services provided, among other things.

For more information, please check out the important resources and articles now available at: