‘Making more money than ever before’: Las Vegas real estate agents using loopholes to charge higher commissions

Some Las Vegas Valley real estate agents are using a number of loopholes to boost their pay and skirt a recent court settlement that was intended to reduce commission rates, according to multiple agents who spoke to the Las Vegas Review-Journal on condition of anonymity.

“Thanks to the settlement, agents are now making more money than ever before,” one agent said. “Agents are just using loopholes and workarounds or just negotiating directly with the other agent.”

The revelation comes on the heels of an recent study from Clever Real Estate that showed real estate agent commissions are up 0.12 percent since 2024, averaging 5.44 percent. The study, which surveyed more than 800 agents from across the country in April, found the average commission in Nevada is 5.6 percent, up from 3.5 percent at the same time last year.

For example, using the median sale price for a house in Southern Nevada ($485,000) and the average commission rate in the state (5.6 percent), the commission on the sale would be $27,160 split between the two real estate agents on the deal.

The National Association of Realtors last year settled a class-action lawsuit that alleged real estate agents were colluding to fix commissions for buyers and sellers.

In the $418 million settlement, NAR agreed to two big changes. First, seller’s agents could no longer advertise commission fees to buyer’s agents via the Multiple Listing Service, where the majority of existing homes are listed for sale. Second, potential buyers must sign a contract with a real estate agent upfront before being shown homes. The changes went into effect last August.

Allegations of monopoly

The lawsuit against NAR and its accompanying associations and brokerages alleged it wielded monopolistic control of the MLS as a way to set commissions between 5 and 6 percent. The settlement forbids agents from setting their commissions via the MLS. It also banned a requirement for real estate agents to join the MLS in the first place. NAR did not admit to any wrongdoing in the settlement agreement.

Multiple local agents were granted anonymity by the Review-Journal to protect them from industry retaliation. They said agents locally and across the country are using a number of tactics to bypass this court settlement, including requiring touring agreements — without a commission listed — rather than buyer-broker agreements before showing homes. Agents said buyer’s agents are then using the mantra “open the door and charge them four,” with the buyer’s agent making a 4 percent commission. After showing the homes, the buyer’s agent then provides the buyer-broker contract, which has the agent commissions on it.

One agent who spoke to the Review-Journal said the rise in commissions could be attributed to a squeezed real estate market, where sellers are pressed to get any type of buyer or offer on a property given the valley’s high number of listings and low number of sales.

Las Vegas Realtors President George Kypreos declined via a spokesperson to comment on the rise in commissions.

The NAR settlement was largely expected to drop commissions substantially, as most developed nations average commission rates that are well below those in the U.S. Commissions in the United Kingdom (1.3 percent), Australia (2.5 percent) and the Netherlands (2.0 percent) are a fraction of those in the United States.

In an email response to the Las Vegas Review-Journal, a NAR spokesperson said the settlement agreement has created greater transparency for consumers regarding agent compensation.

“Members of NAR are entrepreneurs who provide great value to buyers and sellers before, during, and after the transaction, and deserve to be appropriately compensated for their work, like anyone else who provides a service,” said the statement. “That compensation is negotiated directly between an agent and their client. Additionally, members of NAR must always abide by the NAR Code of Ethics and Standards of Practice, which requires members to serve their clients’ best interest. To promote compliance with the settlement, NAR continues to educate real estate agents and consumers about its requirements.”

Nevada Realtors reacts

Nevada Realtors President Brandon Roberts said in an email response to the Las Vegas Review-Journal that the Clever Real Estate study “certainly invites conversation, especially in light of the NAR settlement.”

“It’s important to recognize that real estate commissions have always been — and remain — fully negotiable,” he said. “What we’re seeing with rates for services reflects a mix of market forces, consumer preferences, and the value agents continue to provide in guiding clients through increasingly complex transactions.”

Roberts said the goal of the NAR settlement is to “enhance transparency and consumer choice, not to dictate compensation structures or impose price controls.”

“While the settlement prohibits offers of compensation through listing platforms, it does not prevent buyers and sellers from negotiating compensation directly with agents. That is still their right, and in many cases, that negotiation leads to the traditional compensation models because many consumers value full-service representation,” he said. “If concerns arise about attempts to bypass the spirit of the agreement, those should be taken seriously, but it’s equally important to differentiate between lawful, negotiated agreements and intentional abuse of the system.”

Contact Patrick Blennerhassett at pblennerhassett@reviewjournal.com.