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    Major Changes to Real Estate Commissions (2026 Update)

    A Real Estate Reset Is Here — Will You Use It to Win or Lose? The way real estate commissions work has fundamentally changed....

    • Dario Lorenzo
    • January 11th, 2026
    • 4 min read

     

    A Real Estate Reset Is Here — Will You Use It to Win or Lose?

    The way real estate commissions work has fundamentally changed.

    And whether you’re buying or selling a home in Scottsdale, Paradise Valley, or North Scottsdale, this shift can either save you tens of thousands of dollars—or quietly cost you just as much.

    The old model is gone. Transparency is in. Strategy matters more than ever.

    This guide explains exactly what changed, how it affects buyers and sellers today, and how to use it to your advantage in the current market.

     

    What Changed in Real Estate Commissions? (Plain English)

    Following nationwide lawsuits involving National Association of Realtors and major brokerages, new rules now require:

    • Buyer-agent compensation can no longer be advertised in the MLS
    • Sellers are no longer required to pay a buyer’s agent
    • Buyers must sign written representation agreements upfront
    • Commission is now fully negotiable and transparent

    This isn’t a small tweak—it’s a structural shift in how real estate works.

     

    How Commissions Worked Before

    Traditionally:

    • Sellers paid 5–6% total commission
    • Listing agent and buyer’s agent split that fee
    • Buyers indirectly paid commissions through the home price
    • Buyers rarely discussed or negotiated agent compensation

    Simple—but not transparent.

     

    How Commissions Work Now (2026 Reality)

    🔹 Sellers

    You choose whether to offer buyer-agent compensation.
    You can use compensation strategically to:
    • Increase demand
    • Attract stronger buyers
    • Improve final sale price

    You are no longer locked into a preset structure.

    🔹 Buyers

    You may:
    • Pay your agent directly
    • Negotiate seller concessions
    • Structure compensation creatively in the offer

    Representation is no longer “free”—but it’s more powerful.

    🔹 Agents

    Must clearly prove value.
    Must negotiate, strategize, and advocate—not just unlock doors.

     

    Why This Is Actually an Advantage for Buyers

    This change rewards informed buyers.

    ✅ Full Cost Transparency

    You see exactly what you’re paying and why—no more hidden costs built into pricing.

    ✅ Stronger Negotiating Power

    Buyers can now negotiate:

    • Purchase price
    • Seller concessions
    • Closing costs
    • Commission contributions

    This flexibility often offsets agent fees entirely when done correctly.

    ✅ Better Representation

    You’re no longer limited to agents chasing listings with built-in commissions.
    You can hire the best negotiator, period.

     

    What Buyers Lost (And Need to Plan For)

    🚨 Automatic seller-paid buyer-agent commission
    🚨 Ability to roll commissions into every loan
    🚨 “Set it and forget it” representation

    Today’s buyers need strategy—not assumptions.

     

    Why Sellers Must Adapt (Especially in Scottsdale)

    In luxury and move-up markets like Scottsdale and Paradise Valley, buyers are sophisticated. They compare homes, terms, and total costs.

    Sellers who ignore buyer-agent compensation risk:

    • Fewer showings
    • Weaker offers
    • Longer days on market

    Smart sellers use commission strategically—not emotionally.

     

    Why Choosing the Right Agent Matters More Than Ever

    If you’re paying an agent—or structuring compensation creatively—you need real value, not just paperwork.

     

    Why Buyers & Sellers Work With Me

    ✔️ I Negotiate Aggressively
    I routinely offset buyer-side costs through pricing strategy and concessions.

    ✔️ Flexible Representation Models
    Full-service, negotiation-only, advisory, or flat-fee—tailored to your goals.

    ✔️ I Represent YOU, Not a Commission
    I show all opportunities—on-market, off-market, pre-market.

    ✔️ Creative Deal Structuring
    Seller credits, closing-cost strategies, commission buy-downs.

    ✔️ 32+ Years of Experience
    Real estate, design, construction, and high-stakes negotiations.

     

    Scottsdale Market Insight (Local Advantage)

    In North Scottsdale, Old Town, and Paradise Valley, we’re seeing:

    • More price flexibility than headlines suggest
    • Better terms for prepared buyers
    • Sellers responding well to strategic offers

    The agents who understand this shift are winning deals.

     

    Bottom Line: The Rules Changed — Strategy Wins

    Buying or selling real estate has always been about negotiation.
    Now it’s just more honest—and more rewarding for those who know how to play it.

    If you want to buy smarter or sell stronger in this new environment, you need guidance built for today’s rules, not yesterday’s habits.

     

    📞 Let’s Talk Strategy (Buyers & Sellers)

    📲 Call/Text: (480) 766-6725
    📧 Email:
    [email protected]
    🌐 Website:
    www.dariolorenzo.com

    ✅ Free strategy consultation
    No pressure. No sales pitch. Just clarity.

     

    About Dario Lorenzo

    With over 32 years of real estate and design/construction experience, I help buyers and sellers navigate complex, high-value transactions with confidence.

    I specialize in:

    • Scottsdale luxury homes
    • Strategic negotiations
    • Investment and off-market opportunities

    📍 Serving Scottsdale, Paradise Valley & North Scottsdale

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    About the author

    Dario Lorenzo

    480-766-6725
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    With over 32 years of real estate experience, alongside decades of expertise in design and construction, I bring a wealth of knowledge that ensures my clients get the best outcomes in every transaction. At the age of 17, I purchased my first property, igniting a passion for real estate that has driven me to succeed in all facets of the industry—from residential and commercial properties to land development. What truly sets me apart from other real estate agents is my comprehensive approach. Not only do I have deep real estate expertise, but my design and construction experience allow me to see properties from every angle. I can help buyers envision potential transformations and assist sellers in highlighting their property’s best features. Every strategy I employ is tailored to fit YOUR unique situation, ensuring you get the best possible results. As a home seller, working with me means your property isn’t just another listing—it becomes a standout in a competitive market. I leverage the latest social media strategies and cutting-edge video marketing to ensure maximum reach and engagement. By using high-quality visuals and targeted campaigns, I attract more qualified buyers, which leads to faster sales and higher offers. With me, your home will be seen by the right audience, in the right way. If you’re a homebuyer, my knowledge of market cycles, local expertise, and deep understanding of design and construction gives you an undeniable advantage. I don’t just help you find a house—I help you find YOUR home, a place that fits your lifestyle and goals. I guide you through every step, from finding hidden gems to negotiating the best terms, making your buying process smooth, stress-free, and ultimately successful. But what truly makes working with me unique is that when you become my client, you also become part of my close inner circle. I treat every client like family, building relationships that last far beyond a single transaction. You aren’t just another client—you’re part of a trusted network, and I’m here to support you not just today, but for years to come. Here’s why my clients consistently choose me over other agents; I treat your transaction as if it were my own, I am relentless in ensuring that no opportunity is missed and no detail overlooked. I know that your time is valuable, and I work efficiently to meet your goals on your timeline. My extensive experience, personal commitment, and deep market knowledge give you the peace of mind that you are working with a true professional who puts your needs above all else. In a world where so many agents are transactional, I focus on building lasting relationships. I am dedicated to being your trusted real estate advisor, not just for this transaction, but for every future move you make. My clients return time and time again because they know that with me, they’re in the best possible hands. If you're ready to experience the difference, let's talk. Whether you're buying or selling, I will craft a strategy uniquely designed for your success. Let me guide you through the process and help you make your dreams a reality.

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