LAKE MARY, Fla. — In a move that could ultimately change the way real estate agents get paid, the National Association of Realtors recently agreed to settle a series of lawsuits for $418 million.

What You Need To Know

  • The National Association of Realtors has reached a $418 million settlement to compensate home sellers, and change the way agents are paid

  • Historically, a percentage of a home's selling price is paid by the seller to the agents representing the buyer and seller

  • Under the settlement, a change in the rules could result in buyers and sellers being more responsible for paying their own respective agents

  • If a judge approves the agreement, new requirements would likely go into effect in July

In the past, between 5-6% of a home's sale price has been the standard for paying buyer and seller real estate agents — an amount that is split between the two. But that could change as a result of the National Association of Realtors' settlement, which could require more responsibility from buyers and sellers to pay their own agents, rather than making the sellers cover both fees.

But the terms of the settlement have caused some uncertainty in the housing market, and real estate agents and brokers, like Adair Reality Inc.'s Dione Collier-Larkin, are looking for what comes next.

“Right now, if it changes as of July, we will have to negotiate our fee on behalf of the buyer,” said Collier-Larkin.

Under the National Association of Realtors' current rules, sellers are required to advertise the buyer agent commission on the organization's Multiple Listing Services. But if the settlement goes through, it would mean the seller would no longer have to commit to paying the buyer's agent to use the MLS, and Collier-Larkin said the buyer could end up having to pay the commission instead.

“If our fee is not going to be covered by the listing broker, the buyer is going to have to pay that fee or, unfortunately, they will have to go unrepresented,” she said.

It’s a cost she worries most first-time home buyers might not be able to afford. 

“I think the people who are going to be mostly affected by this are first-time homebuyers who mainly have enough money saved up for their down-payment and closing cost,” said Collier-Larkin.

As a Central Florida native, Collier-Larkin says she transitioned to real estate in 2004 after working as a paralegal for 14 years.

She credits her father for getting her to see the bigger picture and the value of what she could provide.

“He encouraged me to get my real estate license," she said. "I said, ‘No way, I’m not a salesperson.' He said, 'No, this is a service industry,' and that’s how I run my business."

That is why Collier-Larkin said she works on both sides of the business as an agent for both buyers and sellers.

If the settlement is approved, she believes it would create a more competitive marketplace in an industry that has not changed in decades.

“If a seller or listing broker is not offering compensation to a buyer, chances are the buyer is going to switch to a different house,” said Collier-Larkin.

But in her more than 20 years of experience, she said it all comes down to one main goal at the end of the day.

“All four parties to get to the same end result," she said. "The end result is the buyer wants to get into a house and a seller wants to sell their property, and when you work together cooperatively, that’s what happens."

If approved by a judge, the settlement's rule changes would likely go into effect in July.

The Associated Press contributed to this story.