By Eileen S. Voyles
I often hear people ask what really came out of that big real estate lawsuit last year. In October 2023, a Missouri jury in Burnett et al. v. National Association of Realtors ruled that NAR and several large brokerages had enforced a “cooperative compensation” rule that pushed buyers toward listings offering higher commissions.
The case made headlines nationwide, and the outcome has reshaped the way Realtors approach compensation and disclosure.
So, how does this affect us here in Central Pennsylvania? In our market, the system looks much the same on the surface. When I list a home, my client and I establish my commission, and the seller also chooses what they’d like to offer to a buyer’s agent. That part has stayed consistent. Most of the time, when an agent calls me about showing a property, they ask what the seller is offering. Simple and clear.
But travel outside of Pennsylvania, and the process may look quite different.
For example, when preparing to sell my mom’s home in Utah, I learned that the buyer’s agent commission isn’t pre-set by the seller at all. Instead, it becomes another negotiable term inside each offer – just like purchase price, settlement date or inspection requests. One buyer might write $400,000 with X% toward their agent’s commission, while another offers $390,000 with (1/2 x X)%. The seller has to weigh net proceeds, not just the headline number.
Why does this matter for you? If you’re buying or selling in Pennsylvania, expect more open conversations about commissions with your Realtor. Sellers here still typically cover both sides, but transparency has taken center stage. And if you’re exploring real estate in states like Florida, Delaware, New Jersey, North Carolina or Maryland, it’s essential to understand how these national changes are being applied in each market.
Greater transparency benefits everyone. Sellers have clarity about what they’re offering, buyers see the value of their representation, and Realtors can focus on what we do best – guiding clients through one of the biggest financial decisions of their lives.
The rules may be evolving, but the mission remains unchanged.