The real estate market is about to change forever in the US

The American real estate market is experiencing a defining moment. A legal battle resulted in a change of agent rules and reduced commission for homeowners and buyers.

The National Association of Realtors (NAR) settled an antitrust lawsuit by homeowners, who claimed the commission system was unfair to buyers and sellers and favored agents.

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According to The New York Times, before the settlement, the NAR mandated that the seller and buyer's agents agree on a payment, settling a standardized commission across the market.

The standard commission was around 5% or 6%, one of the highest in the world. The lawsuit claimed that the guaranteed rate protected realtors from competition and affected consumers.

If a house sold for $1 million, the commissions rose to $60,000, which the seller's realtor agreed to share with the buyer's realtor.

The commission was paid only by the homeowner or seller, but it ultimately raised the home's overall price for the buyer.

According to The Guardian, the standard earning for realtors, within the average home prices in the US, was about $25,000 before the agreement.

The NAR chose to settle and avoid potential billionaire fines. According to CNN, the association paid around $418 million in damages and agreed to change the rules.

Experts told the New York Times that realtors must reduce their commissions to attract business once the settlement goes into effect.

"It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible," Nykia Wright, interim CEO of NAR, said in a public statement about the deal.

According to an analysis by TD Cowen Insights collected by CNN, commissions could fall between $6,000 and $12,000.

Several experts told the media that the commission fall will likely translate to a fall in house prices. However, prices will not be the only benefit for buyers.

Consumer advocates told The Guardian that the settlement is a step toward transparency in the home-buying marketplace.

According to The New York Times, the new rules will also reduce steering, a practice in which realtors push more expensive homes to buyers for a larger commission.

The deal comes in the middle of a housing crisis in the US. According to NPR, the country is short millions of housing units, which drives up prices.

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However, the new rules might also affect the sector: realtor experts told The New York Times that about a million inexperienced agents will likely leave the profession.