How Buyer Agents Get Paid After the NAR Settlement
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How Buyer Agents Get Paid After the NAR Settlement
1 820 просмотров · 2 г. назад
Smart Agent Alliance
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1 820 просмотров · 2 г. назад
How buyer agent commissions work after the NAR settlement lawsuits.
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Karrie Hill, lawyer turned realtor and coach, breaks down how buyer agents get paid, why that system is being dismantled by the commission lawsuits, and what the court decisions actually change. This is the full chain of events, step by step, from how the traditional commission tab worked to what happens next.
For the last 100 years, home sellers paid the commission for both agents. The seller signs an agreement with the listing agent for a set percentage of the sale, knowing that total includes an agreed-upon share for the buyer's agent. When the property sells, the listing brokerage shares part of that commission with the buyer agent's brokerage. Once the offer of buyer agent compensation is published in the MLS, it becomes a binding promise, creating an obligation to pay the buyer's agent even though that agent is not a party to the seller's contract.
That structure is now under direct legal attack. The video walks through why public perception shifted after Zillow and Realtor.com put listings in everyone's hands, why the steering and incentive criticisms miss how agents actually build careers, and what the Sitzer-Burnett verdict in Kansas City means for the industry. It also covers the brokerage and MLS settlements removing any requirement that sellers offer buyer agent compensation, and the Department of Justice statement of interest in the Nosalek case urging the court to go further and bar sellers from making any offer at all.
What this video covers:
✅ How the traditional commission split works: seller pays the listing brokerage, which shares with the buyer agent brokerage
✅ Why an MLS offer of compensation is a binding promise to a buyer's agent who is not a party to the contract
✅ The Sitzer-Burnett verdict against the National Association of Realtors and the $1.8 billion damages award
✅ How brokerages, associations, and MLSs are settling by removing any required offer of buyer agent compensation
✅ Why the DOJ wants sellers barred from offering buyer agent compensation entirely, and how steering drives that argument
✅ What happens to buyer agent pay if courts nationwide adopt that standard
Chapters:
0:00 What Should You Check Before Signing?
0:23 How did buyer agents first come about?
1:33 Are real estate agents paid too much?
3:47 Who traditionally pays buyer and seller agent commissions?
5:47 What was the Sitzer Burnett verdict in Kansas City?
7:14 What does the Nosek case mean for buyer agent pay?
8:19 What is the DOJ statement of interest on commissions?
10:27 Will buyer agents still get paid after the NAR settlement?
Frequently asked questions:
Who traditionally pays the buyer's agent commission?
The home seller. For roughly the last 100 years, the seller agrees to pay their listing agent a set percentage of the sale, and that total includes an agreed-upon percentage for the buyer's agent, which the listing brokerage then shares with the buyer agent's brokerage.
What was the Sitzer-Burnett verdict?
The Kansas City trial concluded with a verdict against the National Association of Realtors, finding it culpable of conspiring to inflate agent commissions, with $1.8 billion in damages awarded. Its direct impact is localized to the participants in Missouri, but it has triggered copycat lawsuits nationwide.
What does the Department of Justice want changed?
In the Nosalek case, the DOJ filed a statement of interest urging the court to reject the proposed settlement and instead require that sellers not be allowed to make any offer of compensation to buyer agent brokerages. The DOJ argues that leaving the door open keeps listing agents pressuring sellers into customary commission offers to avoid steering.
Does this mean buyer agents will stop getting paid?
No. Karrie is clear that buyer agents will not cease to exist, and follow-up videos cover the shift in the buyer agent business, what may occur, and how to handle it.
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