How do real estate commissions actually work now?
Everything is negotiated, in writing, up front. That's the whole system since the 2024 settlement changes. Sellers negotiate their listing agent's fee in the listing agreement. Buyers agree to their agent's fee in the buyer representation agreement, before touring. Neither number comes from a rulebook.
What changed in practice: offers of buyer-agent compensation no longer appear on the MLS. Whether a seller helps cover the buyer's side gets negotiated in the offer itself, like price or closing date. Sellers often still do — it widens the pool of buyers who can make the deal work.
What didn't change: there's no standard rate, and there never legally was. Anyone who quotes one as fixed is wrong by definition. When we talk, you'll see my number and the reasoning behind it in writing. Grab coffee and ask me anything.
I wrote this answer, and I stand behind it. I'm Chris Deutsch, a Minneapolis Realtor (MN #20382264). Twenty-five years of walking these neighborhoods, checking basements, and sitting across kitchen tables from people making exactly this call. I re-check every answer and date it — this one was last verified .
If your situation is more specific than the market, that's the one worth talking through. Email me at chris@lakesarearealty.com.