Effects of recent legislation on real estate commissions and marketing strategies

Abstract

This article addresses two interrelated areas of contemporary real estate research: emerging industry trends and the transformative impact of artificial intelligence (AI). The first component analyzes commission structures, marketing, and lead generation strategies, as well as the National Association of Realtors (NAR) lawsuits and settlements. While commissions remain steady overall, pressures are most evident in high-value transactions. Marketing innovations emphasize immersive digital tools and multi-channel outreach, while policy changes reshape how the disclosure and negotiation of broker compensation. This article synthesizes recent commentary and evidence on U.S. residential real estate commissions, the NAR's settlement rule changes, and current seller-lead and marketing tactics. The second component examines how AI is reshaping these same dynamics. AI tools are improving lead generation, enhancing property marketing, and enabling predictive pricing, while also introducing new compliance and fair housing challenges. As NAR settlement rules mandate written buyer-broker agreements and off-MLS compensation disclosures, AI provides opportunities to automate documentation and establish audit trails. At the same time, risks such as algorithmic bias, misleading marketing, and regulatory oversight highlight the need for ethical frameworks. Together, these projects provide a roadmap for agents, brokers, and consumers navigating both structural industry shifts and the technological transformation underway.