For decades, the real estate industry operated under a seemingly fixed rule: agents earned a standard commission—often 6%—split between the listing and buyer’s agents. But here’s the truth: real estate commissions have always been negotiable. It just wasn’t widely advertised.
A Brief History of Commission Structure
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1913: The National Association of Real Estate Exchanges (now NAR) introduced a rule encouraging agents to split commissions. This laid the groundwork for the cooperative compensation model.
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1920s–1980s: Commission rates gradually rose from 2.5% to 6%, becoming the industry norm. Sellers typically paid both agents’ fees, and buyers rarely questioned the structure.
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2000s: The internet began to disrupt the gatekeeping of property listings. Platforms like Zillow and Redfin empowered consumers with data, sparking curiosity about agent fees.
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2020s: Legal scrutiny intensified. Antitrust lawsuits—including the landmark Sitzer/Burnett case—challenged the traditional commission-sharing model. The result? A seismic shift in how commissions are disclosed and negotiated.
The Turning Point: 2024 Settlement
In 2024, the National Association of Realtors reached a $418 million settlement that changed the game:
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Buyer agent commissions were removed from MLS listings
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Buyers must now sign written agreements with their agents before touring homes
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Sellers are no longer required to offer compensation to buyer agents
This means both buyers and sellers now have full control over how much they pay—and to whom.
What This Means for You
At 1 Percent Listings, we’ve embraced this shift from day one. Our model is built on transparency, efficiency, and putting more money back in your pocket. Whether you're selling a condo in downtown San Diego or a coastal home in La Jolla, you deserve to know exactly what you're paying for—and why.
Final Thoughts
Real estate commissions didn’t suddenly become negotiable—they always were. But now, consumers are finally empowered to ask the right questions and explore smarter options. If you're ready to list with less and earn more, let's talk.
