Why Agent Commissions Haven’t Changed Much Since the NAR Settlement

What the NAR Settlement Actually Changed

The settlement eliminated the requirement that seller’s agents offer buyer’s agent compensation through the MLS. While this change was expected to dramatically alter commission structures, the reality has been more nuanced:

• Cooperative compensation is still permitted, just not required
• Buyer agency agreements have become more standardized and transparent
• Commission discussions now happen more directly with clients
• Market forces continue to determine competitive rates in most areas

The settlement didn’t mandate lower commissions – it simply changed how they’re negotiated and disclosed.

Leveraging High List-Rate Leads to Justify Your Commission

One of the most effective strategies for maintaining your commission structure is focusing on leads with higher listing potential. Unlike your Sphere of Influence (SOI) with its modest 3-5% turnover rate, specialized lead sources offer significantly higher conversion opportunities:

• Expired Listings: 43% list rate – These homeowners still want to sell but need a better agent
• FSBOs: 38% list rate – Most (88%) eventually use an agent in some capacity
• Pre-foreclosures: 15% list rate – Distressed homeowners who need professional guidance
• FRBOs: 8% list rate – Rental property owners who may want to sell or expand

By focusing on these high-intent leads, you can justify your commission structure through better conversion rates and more efficient prospecting. You’re no longer competing solely on price but on your ability to find and convert motivated sellers.

Multi-Channel Marketing: The Key to Commission Justification

The days of relying solely on cold calling are over. Today’s successful agents maintain their commission rates by engaging prospects through multiple channels—just like they do with their SOI.

From Cold Calling to Comprehensive Marketing

REDX’s platform enables you to reach potential sellers through:

• Social media advertising targeted to specific lead types
• Direct mail campaigns with customized messaging
• Relationship-building strategies that demonstrate your value
• Professional email sequences that nurture leads over time
• Calling strategies that complement your other channels

The “More Ways Is Better” Mindset

Agents who combine multiple outreach strategies see higher conversion rates. This multi-channel approach allows you to:

• Build recognition and trust before discussing commissions
• Demonstrate your marketing expertise to potential clients
• Show sellers the comprehensive approach you’ll use for their property
• Stand out from discount brokerages with limited marketing capabilities

When clients see the breadth of your marketing approach, they understand why your commission rate reflects your value.

Team Leaders: Scaling Commission Protection Across Your Organization

For team leaders, maintaining commission structures requires a systematic approach that can be implemented across your entire organization.

Distributing High-Value Leads at Scale

REDX’s platform allows team leaders to:

• Distribute high list-rate leads to team members based on expertise and capacity
• Track engagement across multiple channels to ensure consistent follow-up
• Implement standardized commission scripts that comply with new regulations
• Monitor conversion metrics to identify coaching opportunities

Automating Marketing at Scale

Teams can maintain higher commission rates by leveraging REDX’s automation tools to:

• Create consistent marketing campaigns across multiple channels
• Ensure compliance tracking across all team members
• Implement standardized value propositions that justify commission structures
• Scale personalized outreach without increasing overhead costs

Legal Considerations for Commission Discussions

While commission rates have remained relatively stable, the legal framework around them has evolved significantly. Understanding these changes is crucial for maintaining compliance.

Required Documentation and Disclosures

The settlement has created new documentation requirements that every agent must follow:

• Written buyer representation agreements are now standard practice
• Commission rates must be explicitly discussed and documented
• Fee structures need clear explanation and disclosure
• Compensation sources must be transparently communicated

Compliance as a Competitive Advantage

REDX’s platform includes built-in compliance tools that give you an edge in this new environment:

• Avoids Do Not Call numbers automatically
• Honors opt-outs across team accounts
• Manages personal Do Not Call lists
• Provides clear guidelines on compliant lead marketing

In today’s litigious environment, compliance isn’t just a restriction—it’s a competitive advantage that protects your business and reputation.

Market-Specific Commission Strategies

While national averages show stability, individual markets show varying patterns that require localized strategies.

High-Demand vs. Challenging Markets

Commission trends vary significantly based on market conditions:

• High-demand markets (like Nashville, Austin) have seen minimal commission changes
• Balanced markets (like Charlotte, Denver) show slight commission compression
• Challenging markets (like parts of the Midwest) have actually seen some commission increases as sellers seek more aggressive marketing

Targeted Farming with GeoLeads

For agents looking to dominate specific neighborhoods where commissions remain stronger:

• Target high-value neighborhoods with GeoLeads to find potential sellers
• Implement neighborhood-specific marketing campaigns that demonstrate your local expertise
• Track neighborhood-specific metrics to show your performance advantage
• Build your reputation as the local expert who commands premium commissions

REDX’s Integrated Platform: Supporting Your Commission Structure

REDX’s Vortex customer acquisition platform provides the tools you need to justify your commission structure in the post-settlement environment.

Demonstrating Value Through Data and Multi-Channel Marketing

Modern tools help you quantify and communicate your value:

• Lead management that tracks every interaction across multiple channels
• Marketing analytics that show the reach and engagement of your property promotions
• Ad Builder that helps you run targeted digital ads to prospects and SOI
• Brand Builder Video that creates polished, professional videos to establish your authority
• Brand Builder Social that automates your content strategy and social engagement

From Prospecting to Multi-Channel Marketing

Remember that REDX is not just a calling platform—it’s a comprehensive marketing system that enables you to:

• Engage leads through their preferred channels
• Build relationships systematically with potential clients
• Demonstrate your marketing expertise from the first contact
• Work high list-rate leads efficiently to maintain your income
• Scale your approach as your business grows

Conclusion: Thrive in the Post-Settlement Era

The NAR settlement hasn’t dramatically changed commission rates, but it has transformed how they’re negotiated and justified. Success in this new landscape requires focusing on high-quality leads, implementing multi-channel marketing strategies, and maintaining strict compliance.

The most successful agents and teams aren’t those fighting to maintain the status quo, but those leveraging tools like REDX to find motivated sellers and engage them through multiple channels. By focusing on leads with higher list rates than your SOI and using REDX’s comprehensive marketing platform, you can maintain your commission structure while delivering exceptional service to your clients.

Recommended Resources:

• REDX Expired Listings (43% list rate)
• REDX FSBO Leads (38% list rate)
• REDX Vortex Multi-Channel Marketing Platform
• REDX GeoLeads for Neighborhood Farming

Additional Resources:

• • NAR Settlement Information Center
  • REDFIN analysis of Agent Commissions.
  • REDX Agent DNC List Guide