Changes To Buyer Compensation

June 3, 2024

The Sitzer/Burnett lawsuit, also known as the "Burnett v. National Association of Realtors" case, challenges NAR's rules that require listing brokers to offer compensation to buyer brokers. The plaintiffs argue that these rules inflate the cost of buying a home by preventing buyers from negotiating their broker's fees and by compelling sellers to pay the buyer broker’s commission. Traditionally, the seller pays both the listing broker and the buyer broker through the proceeds of the home sale. The amount paid to the buyer broker is often determined by the listing broker's offer of compensation in the Multiple Listing Service (MLS). Buyers do not typically pay their broker's commission directly; it is embedded in the home's sales price and paid by the seller.

The Sitzer-Burnett lawsuit and verdict against the National Association of Realtors has changed the landscape in the way residential home sales are conducted on the MLS between real estate agents. The post-lawsuit implactions include: buyers might need to need to directly pay their broker’s fees, which could lead to greater scrutiny of the services provided by buyer brokers and possibly lower commission rates due to competitive pressures. Brokers might adopt alternative business models, such as flat fees, hourly rates, or à la carte services, giving buyers more options and potentially reducing costs.

To get a better understanding of these changes click on link Understanding Rules Offers Compensation 

For additional information on how to sell your house in Fairfield County, CT contact real estate agent Eric Radecki affiliated with Coldwell Banker Realty. Call 475-245-4205 or register at

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