The New Commission Rules - Does Your Agent Understand Them?

It's been over a year since the real estate industry changed how agent commissions work, and I'm genuinely surprised by how many agents still don't fully understand the new rules. More importantly, this confusion is costing buyers and sellers real money and opportunities.

Let me explain what's happening and why it matters to you.

What Changed Last August

In August 2024, new rules went into effect nationwide. The biggest change: sellers no longer automatically pay the buyer's agent commission the way they used to. Instead, buyers now sign agreements with their agents before looking at homes, spelling out exactly how much that agent will be paid.
Sounds simple, right? Except I'm seeing agents mess this up constantly – and it's causing real problems in negotiations.

The Real-World Problems I'm Seeing

Here's a recent example: I had a buyer ready to make a strong offer on a home. The seller's agent told me, "By the way, we're only paying X amount for the buyer's agent commission."
I had to stop them right there. That's not how this works anymore. The seller can make an offer to contribute toward the buyer's agent fee, but that amount is negotiable – just like the purchase price. You can't just dictate terms and expect everyone to accept them.
But this agent genuinely didn't understand that. They thought they could unilaterally set that number and we'd have to accept it.

Why This Matters to Sellers

If you're selling, your agent's confusion about these rules could cost you the best offer.
I'm seeing listing agents box out qualified buyers because they don't understand how to structure deals under the new rules. They're so rigid about commission arrangements that they're essentially turning away good offers that could have worked for everyone.
The worst part? Some of these agents are probably breaking laws because they don't understand what they can and can't do.

Why This Matters to Buyers

For buyers, working with an agent who doesn't understand these rules puts you at a serious disadvantage in negotiations.
Everything is negotiable now – the purchase price, what the seller contributes toward your agent's fee, and how those numbers work together. But if your agent doesn't understand this, you might be making offers that don't make sense or missing opportunities to structure better deals.

How to Know If Your Agent Gets It

Here's the simple test: your agent should be explaining these rules to you before you ever look at a house, not pulling out paperwork at the last minute when you want to make an offer.
If your agent hands you a buyer's agency agreement right before you write an offer, that's a red flag. That document is supposed to be signed before you even start touring homes.
Good agents are having these conversations early and encouraging questions. If your agent seems uncomfortable discussing commission arrangements or brushes off your questions, that's a problem.

The Bottom Line

These rules have been in place for over a year now. They shouldn't be called "new commission rules" anymore – they're just the rules. If your agent is still calling them "new" or seems confused about how they work, you might want to reconsider who you're working with.
The good news is that these rules actually give us more flexibility and options than the old system. We can structure deals in ways that make sense for everyone involved. But only if your agent actually understands how to use these tools.

What You Should Do

If you're thinking about buying or selling, ask your agent directly: "How do the current commission rules work, and how will you handle them in my transaction?"
Listen to their answer. If they seem confident and clear, great. If they're vague or defensive, that tells you something important.
Real estate transactions are complicated enough without working with someone who doesn't understand the basic rules they're operating under. A year into these changes, there's no excuse for confusion anymore.

Ryan Bruen leads The Bruen Team at Coldwell Banker in Morristown, the #1 sales team in the office for over seven years. Questions about how commission rules affect your transaction? We explain everything upfront – no surprises, no confusion.