The 2024 NAR decision gave impetus to the “flat rate” model, so there is no longer a need to pay a 5-6% commission. Each party personally negotiates the agent’s commission and agrees to what they think is fair.

How does this work in practice? Fast Lane Real Estate is a prime example. The team buys homes in any condition for cash. No commissions, renovations, endless showings, waiting for the “perfect” buyer, etc. Deals are closed in just two weeks (instead of 4-6 months, as is often the case). The seller knows: “I’m getting paid, I’m not waiting months, I’m not dealing with commissions.” This is great.

What’s Changing

NAR has changed the old practice of including an agent’s commission in every listing. Now sellers can list their properties for sale with a flat commission, rather than a regular percentage. Laws – federal and state – are adapting to these changes, and new rules prohibit hidden fees or commissions without the seller’s consent. Only written.

The response? Well, agents are more open about pricing and explain what exactly clients are paying for:

• property promotion;
• professional photography;
• document preparation;
• showings;
• legal support, etc.

Sellers no longer view commissions as something mandatory, like sales tax. They are checking options, calculating and comparing… And this gives more ways to work together. Some charge a flat amount. $2,000, $3,000, $4,000. Some still choose a percentage. Others – a low % + a performance bonus, such as 2-3% + $500-1,000.

Who Benefits When Fees Remain the Same?

The seller gets a clear cost. Instead of wondering, “How much will it cost if the price of the house is $350,000 or $750,000?”, he knows: “I pay a fixed fee”. No surprises after the deal closes. Also, control. If the seller has a home that sells fairly quickly or at a low price, then percentage fees can be a big burden. For example, a $200,000 apartment with a 6% fee = $12,000. And a fixed rate of $4,000 is much more profitable.

Another thing is a motivated agent. The agent stops chasing a higher price and focuses on closing the deal properly and without delays.

What for the buyer?

• more options – the agent is usually more involved in the search when the fee is already established;
• honesty – when the fee is not “hidden” in the price of the home, it is easier to see the real value of the property;
• flexibility – you can negotiate a lower fee if the agent does less work (for example, the apartment is already ready, no renovations, etc.).

And for the agent? First, clear positioning. With a fixed fee, the agent looks more open – “I work for a fixed rate”, “no hidden interest”. Second, more clients. Sellers who previously avoided agents because of high commissions are now more willing to enter the market. And finally, efficiency. Instead of waiting for “big price = big commission”, the agent focuses on fast and high-quality execution. A large number of transactions can replace one large percentage.

So, the simple truth: a fixed model does not eliminate the opportunity to make money – it eliminates chaos. The agent receives a predictable commission, the seller gets control over costs, the buyer gets clarity in the deal. Less stress, fewer pitfalls, more trust. And trust, not interest in the deal, is now becoming the main currency in the real estate market.

An Example of What This Looks Like

In a typical scheme, an agent lists a house, a buyer comes, the agent receives, say, 5%. And here: the agent offers, for example, “I will list your house for X$ if you sign a contract with me for a fixed commission of $ 3,000 and together we look for the best option.” The seller takes less risk, the agent has more deals.

What Agents Need to Do

Agents need to learn how to manage their time and demonstrate their value:

1. Review your strategy. Think: how long will it take? How many houses do I sell per year? If I reduce the commission, will I cover the costs, should I increase the number of deals?
2. Explain to clients: “My commission is 5%”, “this includes: photos, marketing, showings, support”. And, if there is a fixed rate: “I can take $ 4,000, regardless of the price.”
3. Provide options. One seller may choose a standard percentage, another a fixed fee. The offer should be flexible.
4. Earn trust. Service and results become important.

And, of course, comply with the law and standards. The law is still being revised, so it is important to monitor changes. What was considered common practice yesterday may be a violation today.

Conclusion

So, a flat fee is a smart choice when the home is not at a premium, when speed is important, when the seller wants lower costs. Agents have a chance to rethink their strategy, offer more, and have more deals. Sellers gain control over costs: they decide how much and for what to pay. And buyers have a fairer market.

If acting consciously, with understanding, all parties can win. And it seems that everything has been moving towards this for a long time.