09/08/2026
๐ก ๐๐ก๐จ ๐๐๐ฒ๐ฌ ๐ญ๐ก๐ ๐๐๐๐ฅ ๐๐ฌ๐ญ๐๐ญ๐ ๐๐จ๐ฆ๐ฆ๐ข๐ฌ๐ฌ๐ข๐จ๐ง ๐๐จ๐ฐ?
๐๐ฉ๐ข๐ต ๐๐ฏ๐ฅ๐ช๐ข๐ฏ๐ข ๐๐ฐ๐ฎ๐ฆ๐ฃ๐ถ๐บ๐ฆ๐ณ๐ด & ๐๐ฆ๐ญ๐ญ๐ฆ๐ณ๐ด ๐๐ฉ๐ฐ๐ถ๐ญ๐ฅ ๐๐ฏ๐ฐ๐ธ ๐๐ฃ๐ฐ๐ถ๐ต ๐ต๐ฉ๐ฆ 2024 ๐๐ฉ๐ข๐ฏ๐จ๐ฆ๐ด
If you haven't bought or sold a home since 2024, you may notice that conversations about real estate agent compensation look a little different today.
You've probably also encountered headlines suggesting that the rules surrounding real estate commissions were completely rewritten.
So, what actually changed?
Perhaps the most important thing to understand is this:
๐ป๐๐ ๐๐๐๐ ๐๐๐๐๐๐๐ ๐
๐๐
๐๐๐ ๐๐๐๐๐๐๐๐๐ ๐ ๐๐๐ ๐๐๐๐๐๐๐๐๐๐ ๐๐๐๐. ๐ป๐๐๐ ๐๐๐๐๐๐๐
๐๐๐ ๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐๐๐๐ ๐๐ ๐
๐๐๐๐๐๐๐๐
, ๐๐๐๐๐๐
๐๐๐๐, ๐๐๐
๐๐๐๐๐๐๐๐๐๐
.
For buyers and sellers in South Bend, Mishawaka, and throughout Indiana, understanding those differences can make the process considerably less confusing.
๐๐ก๐๐ญ ๐๐ก๐๐ง๐ ๐๐ ๐ข๐ง ๐๐ง๐๐ข๐๐ง๐?
Indiana made its own change beginning ๐๐๐น๐ ๐ญ, ๐ฎ๐ฌ๐ฎ๐ฐ.
Under Indiana law, licensed real estate brokers representing sellers and buyers are required to establish those agency relationships through written representation agreements. Those agreements must also include a definite expiration date.
The law was enacted through House Enrolled Act 1068-2024 and applies to both seller/listing and buyer representation agreements.
For buyers, that means the relationship with the professional representing you is now formally established in writing rather than potentially beginning with a more informal understanding.
Indiana's law requires the written agreement, but it does not specify that a buyer must sign it before touring a home. That timing requirement comes from separate industry rules discussed below.
But another major change followed nationally just a few weeks later.
๐๐ก๐๐ญ ๐๐ก๐๐ง๐ ๐๐ ๐๐๐ญ๐ข๐จ๐ง๐๐ฅ๐ฅ๐ฒ?
On ๐๐ฎ๐ ๐ฎ๐ฌ๐ญ ๐๐, ๐๐๐๐, practice changes resulting from the National Association of REALTORSยฎ (NAR) settlement of litigation involving broker commissions took effect.
These were industry practice changes affecting NAR members and Multiple Listing Service (MLS) participantsโnot a new federal law.
Two of the most noticeable changes were:
๐. ๐ถ๐๐๐๐๐ ๐๐ ๐๐๐๐๐-๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐๐๐๐ ๐๐๐ ๐๐ ๐๐๐๐๐๐ ๐๐ ๐๐๐๐๐๐๐๐๐๐๐๐
๐๐๐๐๐๐๐ ๐๐ ๐ด๐ณ๐บ.
Before the change, an offer of compensation to a broker representing the buyer could appear in the MLS listing of a home.
That information was removed from the MLS under the new rules.
Importantly, however, ๐จ๐๐๐๐ซ๐ฌ ๐จ๐ ๐๐ฎ๐ฒ๐๐ซ-๐๐ซ๐จ๐ค๐๐ซ ๐๐จ๐ฆ๐ฉ๐๐ง๐ฌ๐๐ญ๐ข๐จ๐ง ๐ฐ๐๐ซ๐ ๐ง๐จ๐ญ ๐ฉ๐ซ๐จ๐ก๐ข๐๐ข๐ญ๐๐ ๐๐ฅ๐ญ๐จ๐ ๐๐ญ๐ก๐๐ซ. They may still be negotiated and communicated outside the MLS.
๐. ๐ฉ๐๐๐๐๐ ๐๐๐๐๐๐๐ ๐๐๐๐ ๐ด๐ณ๐บ ๐๐๐๐๐๐๐๐๐๐๐๐ ๐๐๐๐ ๐๐๐๐๐๐๐๐๐ ๐๐๐๐ ๐ ๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐ ๐๐๐๐๐๐๐ ๐ ๐๐๐๐.
That agreement identifies the services the real estate professional will provide and addresses how that professional will be compensated. The compensation must be objectively ascertainable rather than open-ended, and the agreement must state that broker compensation is not set by law and is fully negotiable.
These industry requirements overlap somewhat with Indiana's requirements, which is one reason consumers may hear all of them described simply as "the 2024 commission changes."
They're actually separate developments.
๐๐จ... ๐๐ก๐จ ๐๐๐ฒ๐ฌ ๐ญ๐ก๐ ๐๐ฎ๐ฒ๐๐ซ'๐ฌ ๐๐ ๐๐ง๐ญ?
Here's where some of the confusion begins.
There is ๐ง๐จ๐ญ ๐จ๐ง๐ ๐ฎ๐ง๐ข๐ฏ๐๐ซ๐ฌ๐๐ฅ ๐๐ง๐ฌ๐ฐ๐๐ซ.
Depending on the agreements involved and the terms negotiated in a particular transaction, buyer-broker compensation can come from different sources.
For example, compensation could be paid directly by the buyer. A seller may agree to pay some or all of the buyer's contractual compensation obligation to their broker. Compensation could also come through the listing broker when properly agreed upon.
Indiana REALTORSยฎ specifically explains that a buyer may request through the purchase agreement that a seller satisfy some or all of the buyer's contractual compensation obligation to their brokerโsimilar to negotiating other costs within a real estate transaction.
In other words:
๐๐๐ฅ๐ฅ๐๐ซ๐ฌ ๐ฐ๐๐ซ๐ ๐ง๐จ๐ญ ๐ฉ๐ซ๐จ๐ก๐ข๐๐ข๐ญ๐๐ ๐๐ซ๐จ๐ฆ ๐ฉ๐๐ฒ๐ข๐ง๐ ๐๐ฎ๐ฒ๐๐ซ-๐๐ซ๐จ๐ค๐๐ซ ๐๐จ๐ฆ๐ฉ๐๐ง๐ฌ๐๐ญ๐ข๐จ๐ง.
What changed is how these arrangements are communicated, documented, and negotiated.
๐๐ซ๐ ๐๐๐ฅ๐ฅ๐๐ซ๐ฌ ๐ข๐ง ๐๐จ๐ฎ๐ญ๐ก ๐๐๐ง๐ & ๐๐ข๐ฌ๐ก๐๐ฐ๐๐ค๐ ๐๐ญ๐ข๐ฅ๐ฅ ๐๐๐ฒ๐ข๐ง๐ ๐๐ฎ๐ฒ๐๐ซ-๐๐ซ๐จ๐ค๐๐ซ ๐๐จ๐ฆ๐ฉ๐๐ง๐ฌ๐๐ญ๐ข๐จ๐ง?
We wondered the same thing.
And this is where we'd rather tell you what we don't know than give you a statistic we can't substantiate.
We looked for reliable public data showing whether sellers in the South Bend/Mishawaka area have contributed toward buyer-broker compensation more or less frequently since the 2024 changes.
๐๐ ๐ก๐๐ฏ๐ ๐ง๐จ๐ญ ๐ข๐๐๐ง๐ญ๐ข๐๐ข๐๐ ๐ซ๐๐ฅ๐ข๐๐๐ฅ๐, ๐ฉ๐ฎ๐๐ฅ๐ข๐๐ฅ๐ฒ ๐๐ฏ๐๐ข๐ฅ๐๐๐ฅ๐ ๐๐ ๐ ๐ซ๐๐ ๐๐ญ๐๐ ๐๐๐ญ๐ ๐ฌ๐ก๐จ๐ฐ๐ข๐ง๐ ๐ก๐จ๐ฐ ๐จ๐๐ญ๐๐ง ๐ฌ๐๐ฅ๐ฅ๐๐ซ๐ฌ ๐ข๐ง ๐ญ๐ก๐ ๐๐จ๐ฎ๐ญ๐ก ๐๐๐ง๐/๐๐ข๐ฌ๐ก๐๐ฐ๐๐ค๐ ๐ฆ๐๐ซ๐ค๐๐ญ ๐๐ซ๐ ๐ฉ๐๐ฒ๐ข๐ง๐ ๐๐ฎ๐ฒ๐๐ซ-๐๐ซ๐จ๐ค๐๐ซ ๐๐จ๐ฆ๐ฉ๐๐ง๐ฌ๐๐ญ๐ข๐จ๐ง ๐๐๐ญ๐๐ซ ๐ญ๐ก๐ ๐๐๐๐ ๐๐ก๐๐ง๐ ๐๐ฌ.
Individual transactions document their own financial arrangements, but that isn't the same thing as having aggregated market data showing what's happening across St. Joseph County.
So we're not going to guess.
๐๐ก๐๐ญ ๐๐ข๐๐ง'๐ญ ๐๐ก๐๐ง๐ ๐?
This may be the most important part for consumers.
๐๐๐๐ฅ ๐๐ฌ๐ญ๐๐ญ๐ ๐๐จ๐ฆ๐ฆ๐ข๐ฌ๐ฌ๐ข๐จ๐ง๐ฌ ๐๐ซ๐ ๐ง๐จ๐ญ ๐ฌ๐๐ญ ๐๐ฒ ๐ฅ๐๐ฐ.
Broker compensation remains negotiable. The amount and structure should be discussed between consumers and their real estate professionals and documented in the appropriate agreements. NAR's current rules expressly require disclosure that broker compensation is fully negotiable.
That means buyers and sellers should feel comfortable asking questions before signing an agreement.
And those questions don't have to begin with:
"What's the normal commission?"
There is no such thing, and there are better questions.
๐ฌ ๐๐ฎ๐๐ฌ๐ญ๐ข๐จ๐ง๐ฌ ๐๐จ๐ซ๐ญ๐ก ๐๐ฌ๐ค๐ข๐ง๐ ๐๐จ๐ฎ๐ซ ๐๐๐๐ฅ ๐๐ฌ๐ญ๐๐ญ๐ ๐๐ ๐๐ง๐ญ
๐๐จ๐ฐ ๐ฐ๐ข๐ฅ๐ฅ ๐ฒ๐จ๐ฎ ๐๐ ๐๐จ๐ฆ๐ฉ๐๐ง๐ฌ๐๐ญ๐๐?
Ask your agent to walk you through exactly how compensation works under your agreement, including what you could be responsible for paying.
๐๐ก๐๐ญ ๐ฌ๐๐ซ๐ฏ๐ข๐๐๐ฌ ๐๐ซ๐ ๐ข๐ง๐๐ฅ๐ฎ๐๐๐?
Understanding what you're receiving is just as important as understanding what you're paying.
๐๐จ๐ฎ๐ฅ๐ ๐๐ง๐จ๐ญ๐ก๐๐ซ ๐ฉ๐๐ซ๐ญ๐ฒ ๐๐จ๐ง๐ญ๐ซ๐ข๐๐ฎ๐ญ๐ ๐ญ๐จ๐ฐ๐๐ซ๐ ๐ฆ๐ฒ ๐๐ซ๐จ๐ค๐๐ซ'๐ฌ ๐๐จ๐ฆ๐ฉ๐๐ง๐ฌ๐๐ญ๐ข๐จ๐ง?
Depending on the transaction, that may be something that can be negotiated.
๐๐ ๐'๐ฆ ๐ฌ๐๐ฅ๐ฅ๐ข๐ง๐ , ๐๐จ๐ฎ๐ฅ๐ ๐ ๐๐ ๐๐ฌ๐ค๐๐ ๐ญ๐จ ๐ฉ๐๐ฒ ๐ฌ๐จ๐ฆ๐ ๐จ๐ซ ๐๐ฅ๐ฅ ๐จ๐ ๐ญ๐ก๐ ๐๐ฎ๐ฒ๐๐ซ'๐ฌ ๐๐ซ๐จ๐ค๐๐ซ ๐๐จ๐ฆ๐ฉ๐๐ง๐ฌ๐๐ญ๐ข๐จ๐ง?
Yes. That can still be part of a buyer's offer and the resulting negotiation.
๐๐ก๐๐ญ ๐ก๐๐ฉ๐ฉ๐๐ง๐ฌ ๐ข๐ ๐ญ๐ก๐ ๐จ๐ญ๐ก๐๐ซ ๐ฉ๐๐ซ๐ญ๐ฒ ๐๐จ๐๐ฌ๐ง'๐ญ ๐๐ ๐ซ๐๐ ๐ญ๐จ ๐๐จ๐ง๐ญ๐ซ๐ข๐๐ฎ๐ญ๐?
Understanding that possibility before you're negotiating a purchase or sale can prevent surprises later.
More Negotiable Doesn't Always Mean More Understandable
The real estate transaction already involves contracts, inspections, financing, appraisals, disclosures, title work, and negotiations.
The changes surrounding broker compensation added another conversation that buyers and sellers need to understand.
That's not necessarily a bad thing.
Greater clarity about who represents you, what services they're providing, and how they're compensated can help you make a more informed decision.
But you shouldn't be afraid to ask questions.
A good real estate professional should be able to explain your agreement in understandable terms, discuss the options available to you, and help you understand how different decisions could affect your particular transaction.
Because ultimately, the most important question isn't simply:
"๐๐ก๐จ ๐ฉ๐๐ฒ๐ฌ ๐ญ๐ก๐ ๐๐จ๐ฆ๐ฆ๐ข๐ฌ๐ฌ๐ข๐จ๐ง?"
It's:
"๐๐ก๐๐ญ ๐๐ฆ ๐ ๐๐ ๐ซ๐๐๐ข๐ง๐ ๐ญ๐จ, ๐ฐ๐ก๐๐ญ ๐ฌ๐๐ซ๐ฏ๐ข๐๐๐ฌ ๐๐ฆ ๐ ๐ซ๐๐๐๐ข๐ฏ๐ข๐ง๐ , ๐ฐ๐ก๐๐ญ ๐๐จ๐ฎ๐ฅ๐ ๐ ๐๐ ๐ซ๐๐ฌ๐ฉ๐จ๐ง๐ฌ๐ข๐๐ฅ๐ ๐๐จ๐ซ ๐ฉ๐๐ฒ๐ข๐ง๐ , ๐๐ง๐ ๐ฐ๐ก๐๐ญ ๐๐ซ๐ ๐ฆ๐ฒ ๐จ๐ฉ๐ญ๐ข๐จ๐ง๐ฌ?"
At ๐๐๐ข๐ง๐ฌ๐๐จ๐ญ๐ญ ๐๐๐๐ฅ ๐๐ฌ๐ญ๐๐ญ๐ ๐๐๐ซ๐ฏ๐ข๐๐ ๐๐ญ ๐๐๐ซ๐ค๐ฌ๐ก๐ข๐ซ๐ ๐๐๐ญ๐ก๐๐ฐ๐๐ฒ ๐๐จ๐ฆ๐๐๐๐ซ๐ฏ๐ข๐๐๐ฌ ๐๐จ๐ซ๐ญ๐ก๐๐ซ๐ง ๐๐ง๐๐ข๐๐ง๐ ๐๐๐๐ฅ ๐๐ฌ๐ญ๐๐ญ๐, we believe informed clients make better decisions.
Whether you're considering buying your first home, selling a longtime family property, or simply trying to understand how today's real estate process works, we're happy to start with a conversation.
https://wainscottrealestateservice.bhhsnorthernindianarealestate.com
๐๐ณ๐ฐ๐ฌ๐ฆ๐ณ ๐ค๐ฐ๐ฎ๐ฑ๐ฆ๐ฏ๐ด๐ข๐ต๐ช๐ฐ๐ฏ ๐ช๐ด ๐ฏ๐ฐ๐ต ๐ด๐ฆ๐ต ๐ฃ๐บ ๐ญ๐ข๐ธ ๐ข๐ฏ๐ฅ ๐ช๐ด ๐ง๐ถ๐ญ๐ญ๐บ ๐ฏ๐ฆ๐จ๐ฐ๐ต๐ช๐ข๐ฃ๐ญ๐ฆ. ๐๐ฉ๐ช๐ด ๐ข๐ณ๐ต๐ช๐ค๐ญ๐ฆ ๐ช๐ด ๐ฑ๐ณ๐ฐ๐ท๐ช๐ฅ๐ฆ๐ฅ ๐ง๐ฐ๐ณ ๐จ๐ฆ๐ฏ๐ฆ๐ณ๐ข๐ญ ๐ฆ๐ฅ๐ถ๐ค๐ข๐ต๐ช๐ฐ๐ฏ๐ข๐ญ ๐ฑ๐ถ๐ณ๐ฑ๐ฐ๐ด๐ฆ๐ด ๐ข๐ฏ๐ฅ ๐ด๐ฉ๐ฐ๐ถ๐ญ๐ฅ ๐ฏ๐ฐ๐ต ๐ฃ๐ฆ ๐ค๐ฐ๐ฏ๐ด๐ช๐ฅ๐ฆ๐ณ๐ฆ๐ฅ ๐ญ๐ฆ๐จ๐ข๐ญ ๐ข๐ฅ๐ท๐ช๐ค๐ฆ. ๐๐ฏ๐ฅ๐ช๐ท๐ช๐ฅ๐ถ๐ข๐ญ ๐ฃ๐ณ๐ฐ๐ฌ๐ฆ๐ณ๐ข๐จ๐ฆ ๐ข๐จ๐ณ๐ฆ๐ฆ๐ฎ๐ฆ๐ฏ๐ต๐ด ๐ข๐ฏ๐ฅ ๐ต๐ณ๐ข๐ฏ๐ด๐ข๐ค๐ต๐ช๐ฐ๐ฏ๐ด ๐ฎ๐ข๐บ ๐ฅ๐ช๐ง๐ง๐ฆ๐ณ.
SOURCES:
Indiana Professional Licensing Agency / Indiana Real Estate Commission โ Indiana State Law Requires Written Listing and Buyer Agency Agreements. This is our strongest primary source for the July 1, 2024 Indiana requirements. Indiana Professional Licensing Agency notice (https://www.in.gov/pla/files/IPLA-Press-Release-Indiana-State-Law-Requires-Written-Listing-and-Buyer-Agency-Agreements.pdf?utm.com)
National Association of REALTORSยฎ โ Summary of 2024 MLS Changes. Particularly useful for the precise requirements involving compensation disclosures, negotiability, and written buyer agreements. NAR Summary of 2024 MLS Changes (https://www.nar.realtor/about-nar/policies/summary-of-2024-mls-changes?utm.com)
National Association of REALTORSยฎ โ August 17 Practice Change Implementation. Confirms the prohibition on communicating compensation offers through an MLS while explaining that off-MLS offers remain possible. NAR August 2024 practice-change announcement (https://www.nar.realtor/news/real-estate-news/nar-practice-changes-to-take-effect-august-17)
Indiana REALTORSยฎ โ Buyer Broker Compensation. Particularly useful because it addresses how an Indiana buyer may negotiate a request for a seller to satisfy some or all of the buyer's contractual compensation obligation. Indiana REALTORS buyer-broker compensation guidance (https://indianarealtors.com/legal-resource/buyer-broker-compensation/?utm.com)
National Association of REALTORSยฎ โ Consumer Guide to Written Buyer Agreements. A consumer-oriented explanation of written agreements and the negotiability of compensation. NAR Consumer Guide to Written Buyer Agreements (https://www.nar.realtor/the-facts/consumer-guide-to-written-buyer-agreements?utm.com)