Realtor Compensation Changes Are Here. What Does It Mean?

Change is no stranger to real estate (some might even say it’s part of the job description). But this time, the shift isn’t about mortgage rates or market cycles—it’s about how real estate agents get paid. After years of lawsuits, settlements, and industry debates, a new compensation era has officially begun, shaking up what buyers and sellers have long taken for granted.

These updates mark one of the most significant shake-ups the industry has seen in decades—and South Carolina just became one of the first states to roll them out.

So what exactly changed, and how will it affect the people actually buying and selling homes? Let’s break it down.

Understanding Realtor Compensation Changes in 2024

The long-tail focus keyword for this post—Realtor compensation changes in 2024—captures what every buyer and seller wants to understand: how this new structure shifts the financial side of a transaction.

For over 30 years, South Carolina followed a simple (some might say “if it ain’t broke, don’t fix it”) model: sellers hired a listing agent, agreed on a commission, and that commission was split between the listing and buyer’s agents. Sellers often assumed they were paying both sides, but in truth, they were paying one fee to their listing agent, who then shared it with the buyer’s agent.

It was tidy, predictable—and for most people, invisible.

But lawsuits claimed that this system blurred lines, leading to price-fixing and antitrust violations. While that narrative didn’t quite match reality, the courts disagreed. To avoid a financial meltdown from endless appeals, the National Association of Realtors settled. The result? A wave of new policies affecting how agents disclose, negotiate, and structure their fees.

(Think of it like changing the choreography in the middle of the dance—everyone’s still moving, just not in quite the same rhythm.)

A Quick History Lesson (Without the Boring Bits)

Around the 1990s, buyer agency became the new standard in South Carolina. Buyers wanted someone on their side — an agent who represented their interests instead of the seller’s. That’s when commissions began being split between the two agents.

The logic was simple: if a buyer’s agent found the right home and guided their client to closing, they deserved a share of the commission. But as home prices skyrocketed over the last decade, sellers gained more leverage and began negotiating smaller commissions. The downstream effect? Buyer’s agents started seeing gaps between what they charged and what they actually received.

In those cases, buyers sometimes had to make up the difference at closing—not exactly the surprise you want when signing your final stack of papers.

(Imagine getting to the closing table and discovering your “dream home” came with a surprise mini-invoice. Cue the horror movie soundtrack.)

The New Rules of the Game

Under the new national settlement, several sweeping changes took effect on August 12, 2024—a few days earlier in South Carolina because, well, we like to be punctual.

Here’s what’s new:

1. Written agreements are now mandatory. Buyer agents can no longer show homes without a signed buyer agency agreement. Whether you’re touring a mansion or a one-bedroom fixer-upper, that paperwork must come first. (Translation: no more “just looking” weekends without signatures. Paperwork before peeking.)

   
   

2. No more compensation listings on the MLS. Listing agents can’t advertise buyer agent commissions directly on the Multiple Listing Service. That information can only be shared through private conversations or separate platforms like personal websites. This adds an extra layer of communication (and yes, a few more phone calls), but it also creates more flexibility—or chaos, depending on your caffeine level.

   
   

3. Sellers have more options, but more responsibility too. Sellers can now choose not to offer any compensation to buyer agents. Sounds great in theory—until they realize it could shrink their buyer pool by 60%. Most buyers simply can’t afford to pay their agent out-of-pocket. Fewer buyers = fewer offers = less competition. You don’t need a Ph.D. in economics to see how that story ends.

What Buyers Need to Know

For buyers, the biggest shift isn’t just financial—it’s procedural. Every buyer must now sign a written agreement before viewing homes. That agreement lays out the agent’s duties, compensation, and terms.

The good news? Many agents (especially in South Carolina) already follow this process. It’s nothing new here—just official now.

The more complex part comes when buyers realize the compensation landscape varies from home to home. Some listings will still cover their agent’s fee. Others won’t. And some will offer a partial amount, leaving buyers to negotiate or request seller concessions to make up the difference.

It’s not the end of the world—but it does mean every buyer needs a clear conversation with their agent about how commissions work before house-hunting begins.

(Think of it as the financial equivalent of checking your gas tank before a road trip. Don’t skip it.)

What Sellers Should Expect

Sellers, on the other hand, might feel like they just got a raise—until they realize the math isn’t quite that simple.

While it’s true sellers can technically skip paying buyer agent commissions, that strategy can backfire fast. Without compensation available to buyer agents, many qualified buyers won’t even look at the property.

It’s not because agents are being dramatic—it’s because their clients can’t afford the added cost. So yes, a seller can refuse to offer compensation. But that decision might shrink their audience faster than a yard sign in a thunderstorm.

Most experienced brokers, including top firms in Greenville, still recommend offering buyer-agent pay as part of a listing strategy. Not out of generosity—but out of common sense. The broader the audience, the better the odds of a higher sale price.

Lenders Enter the Chat

The next twist comes from lenders, who now need to decide how to treat these new compensation structures.

Let’s say a buyer’s agent fee is partially covered through concessions. Some lenders count that as part of the loan’s “seller concession limit.” Others don’t. That means deals could hit snags if a buyer’s closing costs and agent fees push them over the cap.

Until Fannie Mae and Freddie Mac update their guidelines, every deal will need careful coordination between agents and lenders.

In short: more conversations, more signatures, and more double-checking. (Or as agents like to call it—Tuesday.)

The Local Takeaway: Greenville’s Market Isn’t Panicking

While the headlines sound dramatic, Greenville’s real estate market is adapting calmly. These changes don’t stop buyers from buying or sellers from selling—they just make transparency non-negotiable.

Agents who already operated ethically and explained their fees clearly? They’re fine. Sellers who price wisely and understand how compensation impacts exposure? Also fine.

The real winners are the informed consumers—the ones who know what they’re signing, what they’re paying, and why.

(And maybe the lawyers who wrote all this paperwork. But let’s not ruin the mood.)

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Bottom Line

The dust is still settling, but one truth is clear: Realtor compensation changes in 2024 aren’t the end of the industry—they’re just its awkward growth spurt (the one where everyone’s voice cracks and rules suddenly change overnight).

Transparency is here to stay. Agents have to adapt, buyers need a plan, and sellers have to think a few moves ahead — kind of like chess, except the pawns have mortgages. It’s a lot of moving parts, yes, but this shift might just create a fairer, more honest market in the long run (finally, fewer “surprise fees” — cue the collective sigh of relief).

So buckle up, Greenville—the playbook has changed, but the game’s still the same: relationships, trust, and smart strategy always win (plus, a little patience and maybe a good cup of coffee wouldn’t hurt either).

Ien Araneta

Journal & Podcast Editor | Selling Greenville