What the Sitzer/Burnett Lawsuit Means for Home Sellers (and Buyers) in 2025
🏡 The Basics: What Was This Case About?
The lawsuit was originally filed by a group of home sellers back in 2019 and finally went to trial in 2023. The plaintiffs argued that long-standing industry rules — specifically, those requiring sellers to offer compensation to a buyer’s agent in order to list their home on the MLS — were unfair and drove up costs.
In short, sellers felt forced to pay both sides of the commission: their listing agent and the buyer’s agent. The argument was that this system limited true competition and transparency about what services were worth.
A federal jury agreed. In late 2023, they found the National Association of Realtors (NAR) and several large brokerages liable for violating antitrust laws. The outcome was huge — over $1.8 billion in damages, later followed by a nationwide settlement in 2024 that required NAR to change its rules and pay $418 million.
⚖️ What’s Changing Going Forward
Sellers are no longer required to make a blanket offer to pay a buyer’s agent commission when listing on the MLS.
Buyer-agent compensation must now be negotiated directly — meaning buyers can choose to pay their agent themselves, or negotiate the fee with the seller.
Greater transparency: listing agreements, buyer-broker contracts, and online listings must now clearly show who is paying whom and for what services.
💡 What This Means for Home Sellers
For sellers, this could mean more flexibility and potential savings. You’ll have the option to decide whether to offer compensation to a buyer’s agent and, if so, how much. It also encourages more thoughtful conversations with your listing agent about pricing strategy, marketing, and negotiation.
That said, it doesn’t mean agents will suddenly work for free or that buyer’s agents won’t be part of the process. It simply gives everyone clearer choices.
🧭 What This Means for Buyers
Buyers will likely see more variation in how agents are compensated. Some may prefer to pay their agent directly, while others may still negotiate for the seller to cover part of the cost. The biggest benefit? Transparency.
You’ll have a better understanding of what services you’re paying for — and you can choose an agent based on skill and value, not just tradition.
🌵 A Local Note
Here in New Mexico, many MLS systems and brokerages are already adjusting their paperwork and practices to align with the new national standards. If you’re planning to buy or sell in 2025, it’s worth reviewing your contracts carefully and asking questions about how these changes might affect your transaction.
✨ The Bottom Line
The Sitzer/Burnett case is reshaping the real estate world — but not in a bad way. It’s creating more transparency, flexibility, and conversation about value. Whether you’re a first-time buyer or preparing to sell your family home, these updates are meant to empower you to make informed decisions about how you work with your agent.
If you ever want a clear, down-to-earth breakdown of how commissions work or what these changes mean in your local market, I’m always happy to walk you through it — no pressure, just clarity.
💬 Thinking about buying or selling a home in 2025?
Let’s have a no-pressure conversation about what these changes mean for you.📞 Amanda Blackwell — New Mexico Real Estate 4 You, LLC
