The settlement eliminates the industry standard 6 % commission on buying or selling a home .
Headline
The settlement eliminates the industry standard 6 % commission on buying or selling a home .
IN DEPTH
Individual companies may have their minimum commission rate but there never was an “ industry standard ” 6 % commission rate . The settlement does not set , establish , or eliminate a “ standardized ” commission .
What is new is that seller or buyer compensation amounts will no longer appear in Multiple Listing Service ( MLS ) listings .
MLS ’ s are local / regional databases that feature information on homes available for sale . Prior to the settlement , it was common for the seller ’ s agent to include the buyer agent compensation rate with the listing information . This will no longer occur .
Aggregator sites like Zillow , Homes . com and REALTOR . com combine listing information from many MLS ’ s . They cannot show compensation rates , either .
Buyer / seller compensation rates can still appear in listings on individual broker websites and on marketing materials and listing agents are free to share the information directly with potential buyers agents .