How the 2024 Commission Settlement Empowers Sellers

How the 2024 Commission Settlement Empowers Sellers: Why Now Is the Time to Choose a 1% Listing

The real estate world is changing — and fast. A landmark 2024 legal settlement involving the National Association of Realtors (NAR) has shaken up the way commissions are structured and paid in home sales across the U.S. For sellers, this is more than just a news headline — it’s an opportunity to take control, cut costs, and walk away from a home sale with more money in your pocket.

At 1 Percent Lists Purple Door, we’ve always believed that sellers deserve full-service real estate without the inflated price tag. And now, thanks to these industry-wide changes, our 1% listing model is more relevant — and more valuable — than ever. Here’s what you need to know about the settlement, what it means for you, and why now is the perfect time to consider a smarter way to sell.

What Was the 2024 Commission Settlement?

In early 2024, the real estate industry reached a turning point. After years of legal scrutiny, the National Association of Realtors (NAR) agreed to a significant settlement that changed the way agent commissions are handled in residential real estate transactions. This settlement was the result of multiple lawsuits claiming that the traditional commission structure — where sellers were expected to cover both their agent’s fee and the buyer’s agent’s fee — unfairly inflated costs.

Here’s what changed:

  • Sellers are no longer required to offer buyer agent commissions upfront. Previously, listing agents would often advertise a commission split to buyer agents through the Multiple Listing Service (MLS). That’s no longer required under the new rules.
  • Increased transparency: Agents are now obligated to clearly explain how commissions are negotiated and paid, giving both buyers and sellers more insight — and more control — over the costs involved.
  • More room for negotiation: Buyers and sellers can now negotiate compensation with their respective agents more freely, opening the door to creative and cost-effective solutions.

In short, the settlement dismantled the long-standing assumptions about commission fees — and gave sellers the power to choose how they want to handle compensation. It’s a win for homeowners, and a clear signal that the traditional 5% to 6% model is no longer the only option.

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Why This Matters for Home Sellers

For years, home sellers have felt locked into high commission fees with few alternatives. The traditional model — often charging 5% to 6% of the sale price — was baked into the process, with little room for negotiation or transparency. But thanks to the 2024 settlement, the game has changed.

Now, sellers are in the driver’s seat.

With no obligation to offer a buyer agent commission and more flexibility in how they structure their agreement with a listing agent, sellers can significantly reduce the costs associated with selling a home. In this new landscape, every dollar saved on commissions is a dollar that stays in your pocket — not your agent’s.

This shift is particularly important in today’s market, where equity matters more than ever. Whether you’re moving up, downsizing, or simply cashing out, minimizing transaction costs can make a big impact on your financial outcome. Sellers are waking up to the fact that they have choices — and they’re actively seeking out alternatives that combine value, service, and savings.

How 1 Percent Lists Was Ahead of the Curve

While the rest of the industry is scrambling to adjust, 1 Percent Lists has been ready for this moment from day one.

Our 1% listing model was built around the idea that sellers deserve better — better service, better transparency, and better value. Long before commissions became a national talking point, we offered full-service real estate at a fraction of the cost of traditional brokerages. That means professional marketing, expert pricing, negotiation support, and transaction management — all for just 1% listing commission.

In fact, the very changes introduced by the 2024 settlement validate what we’ve known all along: sellers shouldn’t be overpaying for real estate services. Our model proves that it’s entirely possible to sell your home successfully, with expert guidance, and still keep thousands more from the sale.

We weren’t just prepared for the industry to change — we were leading the way.

Real Savings: Case Studies and Examples

Let’s break down the savings. Suppose you’re selling a $400,000 home.

  • Traditional 6% commission: You’d pay $24,000 in fees.
  • 1 Percent Lists model: You pay just 1% for the listing side — $4,000 — plus whatever you choose to offer a buyer’s agent, if anything.

Even if you offer a 2.5% commission to a buyer’s agent, your total commission comes out to $14,000 — a full $10,000 in savings. And if the buyer is unrepresented or agrees to a lower commission, the savings can be even greater.

These aren’t hypothetical numbers — they’re real savings our clients see every day. At 1 Percent Lists Purple Door, we’ve helped sellers across the region walk away from the closing table with significantly more in their pocket, without sacrificing service or results.

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What Sellers Should Do Now

If you’re thinking about selling your home in 2025, now is the time to act. The market is shifting, and sellers have more negotiating power than ever before. Here’s what we recommend:

  • Ask questions: Don’t be afraid to ask your agent how commissions are structured and where your money is going.
  • Shop around: Compare listing models — especially between traditional brokers and discount real estate services like ours.
  • Don’t assume higher commission means better service: Many sellers are surprised to learn they can get the same (or better) results with a lower-cost, full-service brokerage.

By choosing a listing model like ours, you can take advantage of the changing rules and put more equity back into your next home, your savings, or your retirement.

Conclusion

The 2024 commission settlement marks a major shift in the real estate industry — and it’s a shift that benefits you, the seller. With more freedom to choose how you pay for real estate services, now is the perfect time to rethink the old way of doing things.

At 1 Percent Lists Purple Door, we’ve always been committed to helping sellers keep more of their hard-earned equity. Our 1% listing model isn’t a discount in service — it’s a smarter, more modern way to sell your home.

Ready to see how much you can save?
Contact us today and let’s talk about your goals — and how we can help you reach them, for less.