What Will Happen to Real Estate Commissions in 2026?

By Terry Trexler

Hi I’m Terry Trexler and I’ve built a top-selling real estate team that covers 12 states and growing. I just moved to LPT Realty after being with another brokerage for years. The splits are better, the revenue share is better, and it’s honestly the perfect business model now that we can build on the existing success of proven cloud brokerage models. I invite you to check out LPT Realty. Move your license over to us. We’re a brokerage focused on listings and profitability.

If you’ve been wondering how commissions will change in 2026, you’re not alone. The lawsuits, settlements, and new rules rolling out across the industry have created uncertainty for many agents. The truth is that commissions are not going away - they’re shifting. These changes will reshape how we present our value, structure compensation, and guide clients. The agents who prepare early will be the ones who stay strong in this new landscape.

As we head into 2026, here’s what you need to know.

The first significant change occurs when the commission conversation takes place. Buyers will sign representation agreements before touring homes, which means your commission explanation will no longer take place at the closing table.

It will happen on day one. This requires a simple, direct presentation that shows your value, your process, and the services clients receive when they choose to work with you. Having a clear message will help clients understand that professional representation is a necessity, not an option. It is essential.

Another shift is transparency. Buyers and sellers will expect more clarity about how compensation works. They will compare services and fees the same way they compare contractors, lenders, or insurance plans.

If you don’t explain the value behind your structure or cannot demonstrate how your service protects clients and improves outcomes, you will struggle to compete. A strong value script will become one of the most important tools in your business.

Negotiation will also play a larger role. Flat fees, hourly options, tiered packages, and traditional commission percentages will coexist simultaneously. There is no single model that works for every situation. The key is understanding your local norms and confidently explaining the best approach for each client. Your ability to guide clients through these choices will have a direct impact on your income.

The most significant shift is that value will ultimately determine everything. Clients will pay for skill. They will pay for guidance. They will pay for agents who communicate clearly and protect them from risk. Your systems, service, and presentation will determine how well you adapt to the new market.

If you want help updating your presentations, value scripts, or client onboarding process, I’m here to help. Call, text, or email me to schedule a strategy call. I’ll walk you through the exact steps I use to stay ahead of these changes so you can protect your business in 2026.