The dust is beginning to settle here in lower Fairfield County following a 2024 lawsuit brought against the National Association of Realtors (NAR) for inflating agent fees and suppressing competition. The fallout: Though it may now cost less in brokerage fees to sell a home, it could cost buyers more to acquire one than it did prior to the settlement.
In the past, before a home could be listed on the Multiple Listing Service, the NAR’s database, a seller had to agree to pay the selling agent a commission. In Connecticut, that typically was about 6 percent of the home’s selling price—or $60,000 on a million-dollar home. Once the sale was made, the seller’s agent would share some of that commission with the buyer’s agent. The percentage they’d promised to share was posted ahead of time within the MLS, so the buyer’s agent knew what they would receive upon completion of the sale (though that information wasn’t shared with the buyer).
Not anymore. “They are no longer allowed to disclose on the listing what the commission is going to be,” says Julie Vanderblue, founder of the Vanderblue Team and president of the Higgins Group, a Christie’s International Real Estate affiliate. Sellers’ agents may still choose to share (Vanderblue’s sellers, for example, offer a percentage to “incentivize the buyers’ agents to sell the property”) but they don’t have to. In that case, buyers have to cover their agents’ fees. In many instances, buyers’ brokers won’t even know until they’re ready to put an offer on the table if the seller’s brokers plan to share.
Vanderblue believes that the terms of the settlement have “not been helpful to either party,” but she’s trying to “find the positive.” She notes that in her more than 25 years in business, some agencies actually “trained their agents to push higher-commissioned properties, and to talk prospective buyers out of the 2 percenters. Now, buyers’ agents will have to work harder to earn their value, which I think is good. The good agents will survive and thrive. The not-so-great agents won’t make it.”
Today, real estate agents hand over contracts to potential buyers before ever showing them around. The documents specify how much the buyer has to pay them, as well as what services the buyer’s agent will provide. Motivated by the suit, many agencies here in lower Fairfield County now spell out what they bring to the buyer’s table beyond house-hunting, from networks of painters and renovation experts to mortgage representatives, attorneys, inspectors, insurers, stagers, relocation experts, even dual agents for 24-hour access. “I think buyers are being more discerning, so you have to prove your worth,” says Vanderblue. “When buyers recognize how much we do, they’re more likely to choose wisely.”
Having to bear their agent’s fee could result in lower offers, as buyers often scrounge for every penny when they’re trying to move up. In some instances, commission costs may be rolled into the offer, upping mortgage payments and tacking finance charges onto that brokerage fee. “It’s making it less affordable and more stressful for our buyers today. The people that got hurt the most are the people who needed the most protection,” says Vanderblue.
Best of Both Worlds? Maybe Not
Search online for “homes for sale near me” here in lower Fairfield County and watch the pages appear, complete with price, photos, school districts, taxes and more—including the listing agent. It’s logical to believe that going directly to the listing agent will spare the buyer commission fees, but ultimately, at what cost? “The seller’s agent has a fiduciary responsibility to get the seller the best price,” says Vanderblue. “That’s a conflict of interest, and it muddies the water.”
If that thought has occurred to you, make sure the listing brokerage supplies you with your own agent to represent your interests. “You need protection, advisement and education. You have to have full representation,” says Vanderblue.