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Real Estate Commission Splits After the NAR Settlement

How the 2024 NAR settlement changed commission structures — and what agents need to know now.

What Changed in 2024

The National Association of Realtors settlement that took effect in August 2024 changed how buyer agent commissions are negotiated. Sellers are no longer required to offer compensation to buyer's agents through the MLS. Instead, compensation must be negotiated directly between parties.

In practice, buyers and their agents now negotiate compensation separately, and sellers have more control over what — if anything — they offer to a buyer's broker.

Typical Commission Splits by Brokerage Type

Traditional brokerages (KW, RE/MAX, Coldwell Banker): New agents typically start at 50/50 and work up to 70/30 or higher as they hit production caps.

Flat-fee brokerages: Agents keep 100% of commission but pay a monthly desk fee ($50–$500/month) and per-transaction fees ($200–$500).

Team splits: Agents working under a team leader often split further — 60% to the agent, 20% to the team, 20% to the brokerage.

Use the Compare Brokerages tab in the calculator to model which structure earns more at your deal volume.

How to Calculate Your Real Take-Home

Most agents focus on their brokerage split and overlook transaction fees, E&O insurance, MLS dues, and desk fees. On a $400,000 home at 3% buyer's agent commission with a 70/30 split: gross commission is $12,000, your share is $8,400 — but after a $300 transaction fee, your net is $8,100.

Model your real net using the commission split calculator, which accounts for all fee layers in the annual projector tab.

Compare real estate brokerage splits side by side → Open the free calculator