What the New Real-Estate Commission Rules Mean for You

Posted by Joe Grunnet on Wednesday, September 24th, 2025  10:47am.

What the New Commission Rules Mean for You

The way real estate commissions work had its biggest shake-up in decades in 2024. What used to be a nearly automatic 6% split between agents is now up for negotiation. That change impacts both buyers and sellers here in Minneapolis, and it comes with pros and cons. On the plus side, the process is more transparent and gives you more control. On the flip side, you'll want to have clear conversations up front so there are no surprises later.

  1. WHAT CHANGED
  2. IF YOU’RE BUYING: KNOW BEFORE YOU TOUR
  3. IF YOU’RE SELLING: MORE FLEXIBILITY, MORE STRATEGY
  4. THE FINANCIAL SIDE
  5. WHAT IT MEANS FOR YOU IN MINNEAPOLIS
  6. Key Takeaways
  7. FAQS ABOUT THE NEW REAL ESTATE COMMISSION RULESWhy the Rules Changed

Back in March 2024, a big lawsuit shook up the real estate world. Home sellers argued that the old system kept fees too high, with sellers usually covering around 5–6% split between both agents. The rule that required sellers to offer a buyer's agent commission through the MLS made it feel like those costs were locked in. To settle, NAR paid $418 million and agreed to change the system, which many now see as the official end of the "standard 6% commission" era.

What Changed

Two big updates came out of that settlement:

  1. Listing agents can no longer post an "offer of compensation" for a buyer's agent in the MLS. Buyer agent pay isn't automatic anymore.

  2. If you're buying, you now sign a written agreement with your agent before seeing homes. That contract explains exactly how your agent will be paid.

These changes bring more transparency and give you a bigger voice in the process.

If You're Buying: Know Before You Tour

When you're looking for a home, you'll have a clear talk with your agent about their fee before you ever walk through a condo or loft. That fee might be a percentage of the purchase price or a flat rate, depending on what you and your agent agree to. In many cases, sellers still cover it, but if they don't, you can ask for a credit or build it into your offer. The important thing is you'll know what to expect and can plan ahead.

If You're Selling: More Flexibility, More Strategy

If you're selling, you now have options. You don't have to offer a buyer's agent commission anymore, but many sellers still do because it helps their property stand out. In popular neighborhoods like the North Loop, Mill District, or Loring Park, offering 2–3% is still common. The good news is you get to decide what makes sense for your situation.

The Financial Side

Right now, commissions haven't shifted much overall. Buyer's agent fees are averaging about 2.4% nationwide, which is close to what they were before. Higher-priced homes sometimes see slightly lower percentages, while entry-level condos often land closer to 2.5–3%. If you're selling, this could mean lower closing costs if you offer less. If you're buying, it just means you'll want to plan for your agent's fee early and make sure it's part of your game plan.

What It Means for You in Minneapolis

Here in Minnesota, the MLS no longer shows preset buyer-agent commissions. If you want to offer one as a seller, it's shared outside the MLS directly between agents. Contracts in Minnesota have also been updated, so if you're buying, you'll sign your agreement with your agent before touring. The steps are mostly the same, but the money talk now happens earlier and with a lot more clarity.

Key Takeaways

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Joe Grunnet
Broker | DRG | Condo Expert
700 Washington Ave N, Ste 101

Joe@DRGMpls.com
612-244-6613

FAQs About the New Real Estate Commission Rules

Do sellers still have to pay the buyer's agent commission in Minneapolis?
No, sellers in Minneapolis and across the U.S. are no longer required to pay the buyer's agent commission under the new rules. In the past, sellers almost always covered both their agent's fee and the buyer's agent's fee, which typically totaled 5–6% of the sale price. Today, sellers can choose whether or not to offer a commission to a buyer's agent. Many sellers still offer between 2–3% as an incentive to attract more buyers, but it's now completely optional.

When did the new real estate commission rules go into effect?
The new real estate commission rules went into effect on August 17, 2024. From that date forward, buyers have been required to sign a written agreement with their agent before touring homes, and MLS systems stopped displaying preset buyer-agent commission offers. These changes are now fully in place in Minneapolis and throughout Minnesota.

Will home buyers end up paying more with the new commission rules?
Home buyers will not automatically pay more under the new rules. While buyers are now responsible for negotiating their agent's fee directly, they can often offset that cost by asking the seller for a credit or including it in their purchase offer. In most cases, the overall cost of buying a home is about the same as before — the main difference is that commissions are now openly discussed instead of being bundled into the sale price.

What is the average real estate commission rate in 2025?
As of early 2025, the average buyer's agent commission in the United States is about 2.4% of the sale price. This is very close to the pre-2024 average, but it now varies more by property type and market. In Minneapolis, most sellers are still offering between 2% and 3% to buyer agents, with higher-end homes sometimes seeing lower rates and entry-level condos staying on the higher side.

How can a home buyer know what they will pay their real estate agent?
A home buyer will know exactly what they owe their real estate agent because they must sign a written buyer representation agreement before touring any homes. This agreement clearly outlines how the agent will be paid whether it's a percentage of the home price, a flat fee, or another structure. Having this in writing up front makes commissions transparent and avoids last-minute surprises at closing.

How do the new real estate commission rules affect Minneapolis buyers and sellers specifically?
In Minneapolis, the process of buying and selling is mostly the same, but commission conversations now happen earlier. Sellers decide what, if any, commission they want to offer, instead of it being automatically set in the MLS. Buyers must sign their agent agreement before looking at properties, which clarifies expectations from the start. Minnesota's MLS and contract forms were updated in 2024 to comply with the new rules, so transactions here are already running smoothly under the new system.