Real estate has plenty of moving parts, but few topics get more attention—or more misinformation—than how REALTORS® are paid. With the recent NAR lawsuit settlements making headlines in the last couple years, people are asking more questions than ever about commissions, who pays them, and what this all means for buyers and sellers.
So let’s cut through the noise and get straight to the point.
Where the Commission Starts
In our example, let’s look at a $300,000 home with a 6% commission, creating a $18,000 total.
That $18,000 doesn’t go to the agents directly. It’s split between the two brokerages involved:
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Seller’s brokerage: $9,000
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Buyer’s brokerage: $9,000
This was the standard structure for years, where the seller’s broker offered compensation to the buyer’s broker through the MLS. That offer can still happen, but it’s no longer automatic or assumed—and that’s one of the biggest shifts coming out of the NAR settlements.
Then the Brokerage Split Happens
Each agent has an agreement—known as their “split”—with their office. In this example, the agent keeps 70%, and the brokerage keeps 30%.
So from the brokerage’s $9,000 share:
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Agent earns $6,300
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Brokerage earns $2,700
Both the listing agent and the buyer’s agent go through the same breakdown.
Once you see the math, it becomes obvious: Real estate agents aren’t taking home the entire commission. Far from it.
How the NAR Settlement Fits Into All This
The NAR lawsuit settlements have sparked a wave of confusion, with plenty of headlines but not a lot of clarity. Here’s the simple version:
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Commissions were never “set” by NAR. They’ve always been negotiable.
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The settlements don’t eliminate commissions, but they will change how agreements are communicated and signed.
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Buyer representation agreements will (and have) become the norm, ensuring buyers know exactly how their agent is compensated.
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Sellers will still be able to offer compensation to buyer agents—but they won’t be required to.
In other words:
The basic math in the example still applies. The relationship—and transparency—around it is what’s evolving.
More clarity is good for everyone. Buyers will understand exactly what their agent does and how they’re paid. Sellers will have options. And agents will continue doing what we’ve always done: guiding people through some of the biggest financial decisions of their lives.
Why This Matters for Your Transaction
A few takeaways now that you’ve seen the breakdown and considered the headlines:
1. You’re paying for expertise—not just access to a house.
Your agent earns a fraction of the total commission, and they earn it by managing contracts, negotiations, inspections, timelines, and the thousand tiny details that protect your interests.
2. Brokerages earn their cut by providing support and legal compliance.
This protects you as the consumer as much as it supports the agent.
3. The NAR changes won’t make buying or selling “cheaper.”
They’ll make the process clearer—and that’s a win for consumers.
The Bottom Line
Real estate agents only take home a portion of the commission, and with the NAR settlement changes, buyers and sellers will have even more transparency into how that compensation works.
If you want to know what this looks like with your home value—or you want a breakdown of how buyer agreements will work moving forward—just ask. I’m always happy to walk you through it in plain English.