What to Expect When Selling Your Home
Selling a home comes with many questions, but one of the biggest is understanding real estate commissions. With recent lawsuits and industry changes making headlines, sellers need clear and up-to-date information on what to expect, what is negotiable, and how these changes impact their home sale.
To clarify what sellers should know before listing their homes, we spoke with Brianna Castillo, an experienced Dallas-Fort Worth realtor, and Mortgage Mark. This guide will cover:
- How commissions work and why they vary by market
- Recent legal changes affecting commissions
- What sellers should expect in negotiations
- Whether paying full commission is worth it
If you are thinking about selling your home, this is everything you need to know about real estate commissions in 2025 and beyond.
Real Estate Commissions Vary by Market
The first thing to understand is that real estate commission rates are not fixed. They can vary based on location, home prices, and the level of service provided by an agent.
Brianna Castillo explained that different regions, and even cities within the same state, can have different typical commission structures.
For example, real estate in Dallas-Fort Worth may look different from Waco or Austin, even though they are all in Texas. Factors that influence commission rates include:
- Local home prices. Higher-priced markets may have lower commission percentages.
- Demand in the area. Sellers in competitive markets may have more room to negotiate.
- The cost of marketing and selling a home. Luxury properties require higher marketing budgets.
- Before listing your home, it is important to talk to local agents and recent sellers to understand what is common in your market. Do not assume that commission rates in one area apply everywhere.
How to Determine What is Normal in Your Market
- Interview multiple real estate agents: Ask about their commission structure and services.
- Talk to recent home sellers: Find out what they paid and what services they received.
- Research local listings: Some multiple listing service platforms display commission information.
The 2024 Real Estate Lawsuit and Its Impact on Commissions
A 2024 class action lawsuit against the real estate industry challenged how commissions were communicated and negotiated. While the lawsuit did not target individual realtors, it focused on:
- How commissions were communicated to buyers and sellers
- Whether sellers were being forced to pay buyer agent commissions
- Transparency in compensation agreements
What Changed for Real Estate Agent Commissions?
Before the lawsuit, buyers could contact a real estate agent and tour homes without any formal commitment. Now, buyers must sign a Buyer Representation Agreement before viewing a property with an agent.
This agreement clearly states how much the buyer’s agent is compensated and who is responsible for paying them. If a seller chooses not to offer buyer agent compensation, the buyer may need to cover their agent’s commission.
Brianna Castillo emphasized that communication about compensation is now much clearer. Agents are required to explain exactly who is earning what and who is paying what at the beginning of the process.
Does This Mean Sellers No Longer Have to Pay Buyer Agent Commissions?
Sellers are not required to pay buyer agent commissions, but not offering a commission could impact how many buyers consider their home.
In competitive markets like Dallas-Fort Worth, offering a buyer agent commission is still a common practice because it:
- Attracts more buyers and their agents
- Keeps the listing competitive with similar homes
- Helps smooth negotiations since the buyer will not have to cover this cost directly
Even if a seller is not required to pay commissions, buyer and seller negotiations often result in the commission being built into the sale price.
What to Expect When Negotiating Commissions
Commissions are always negotiable, but sellers should understand what they are paying for before cutting costs.
What Services Do Real Estate Agents Provide
A full-service agent offers:
- Professional marketing including high-quality photos, virtual tours, and listing syndication
- Pricing strategy based on data-backed home valuation
- Showings and open houses, coordinating buyer visits and scheduling tours
- Negotiation expertise to secure the best price and contract terms
- Paperwork and legal compliance, ensuring all forms, disclosures, and deadlines are met
- Closing coordination, managing inspections, appraisals, and lender requirements
“A great agent will make sure sellers know all of their options.”
What Happens When Sellers Choose a Discount Agent
Some agents advertise lower commission rates, but it is important to know what is included. A discounted commission could mean:
- Limited marketing efforts, fewer online listings, and no professional photography
- Minimal involvement, with less hands-on support for showings and negotiations
- Lower buyer interest, as fewer agents are incentivized to bring buyers to the home
A great agent is an investment in getting the highest possible sale price.
Is It Worth Paying Full Commission
While commissions may feel like a major expense, a skilled agent can help sellers net more money by selling their home faster and at a higher price.
When Paying Full Commission Makes Sense
- The seller needs to sell quickly. A great agent can generate more interest, leading to a faster sale.
- The seller wants top dollar. Skilled agents maximize offer prices through expert negotiation.
- The home requires marketing. Higher-end or unique properties need professional staging, photography, and advertising.
- If a seller is concerned about commission costs, they should ask agents to show past sales data that proves their services bring a return on investment.
Final Thoughts – What Sellers Should Expect
In 2024, sellers should expect more transparent commission discussions. A great real estate agent will clearly outline:
- What is standard in the market
- Who pays which commissions
- What services the seller is receiving
- Selling a home is a major financial decision, and working with an experienced professional can make all the difference.
If you have questions about real estate commissions or how these changes affect your home sale, please reach out to our team!
Mark Pfeiffer
Regional Sales Manager
Loan Officer, NMLS # 729612
(972) 829-8639
MortgageMark@MortgageMark.com
Mortgage Mark
When you're hearing from 'Mortgage Mark' you're hearing years of excellent customer service and success from our passionate loan officers.