Denver, CO
Real estate commissions, unassailable for decades, could crumble after landmark settlement
The National Association of Realtors announced Friday that it had reached a legal settlement that upends the traditional model of sellers paying for the buyer’s agent in a home purchase. The agreement has the potential to save home sellers billions of dollars every year, but could also complicate purchases for buyers.
The NAR, the largest trade group representing residential real estate agents, agreed to pay $418 million over four years to settle claims that the group and its members engaged in uncompetitive practices that forced sellers to compensate agents who brought buyers to the closing table.
“There are valid positions on both sides, and this is the way the game has been played,” said Mark Lee Levine, a professor at the Burns School of Real Estate and Construction Management at the University of Denver who has tracked the issue closely.
Starting in July, the game will be played differently. Buyers can no longer count on sellers paying the agents representing them, Levine said. On a $600,000 home, that could shift around $15,000 to $18,000 in typical commission costs back to the buyer.
Commissions on a home sale are, in theory, completely negotiable, but they typically run in the 5% to 6% range. How commissions get split can vary, but sellers almost always pay the buyer’s agent via what is known as a cooperative compensation model or co-op.
What a seller was willing to pay was communicated on the multiple-listing service or MLS controlled by local Realtor associations. If the compensation was too low or non-existent, buyer agents would pass on showing a home, plaintiffs in a case known as Sitzer-Burnett argued.
Listing the buyer agent compensation is now prohibited as part of the settlement. States must require buyers and their agents to enter into written agreements detailing compensation and what services are provided for it, something Colorado already requires.
Buyers still have the right to push for a lower commission, as was the case before. But if they know they are footing the bill, they may be much more motivated to do so.
“For far too long, home sellers have faced a system recognized by many as blatantly unfair. Individual sellers often feel powerless to negotiate a better deal for themselves given the risk that offering lower commissions will cause brokers to steer buyers to other properties,” Robert Braun, a partner in Cohen Milstein’s Antitrust practice, and one of the attorneys that led the case against NAR said in a statement.
Technology has lowered or eliminated commissions across wide parts of the economy, from stock brokerages to travel agencies. But they largely remained unassailable in real estate until a jury ruled against the industry last year. A series of settlements have followed that ruling.
Friday’s settlement resolves claims against NAR and its more than 1 million members, and against regional and local Realtor associations, including the Colorado Association of Realtors and the Denver Metro Association of Realtors. The settlement also shields brokerages run by a NAR member that did $2 billion or less in transactions in 2022 in the case, sparing them the cost of extensive litigation.
“We are pleased we have a solid path forward. We know how to move forward now. We are looking forward to going back and selling,” said Libby Levinson-Katz, head of DMAR’s Market Trends Committee.
Although the heavy weight of litigation in the Sitzer case has been lifted, what comes next is uncertain.
Will sellers and buyers, aided by cost-saving technology, push to lower some of the highest real estate transaction costs in the developed world? Will the real estate brokerage industry, already struggling from higher interest rates, suffer another steep drop in revenues, forcing tens of thousands of agents out of the field? Will buyers get a break via lower home prices to cover their added costs, or will sellers pocket the savings, leaving buyers in the lurch?
“NAR has worked hard for years to resolve this litigation in a manner that benefits our members and American consumers. It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible. This settlement achieves both of those goals,” said Nykia Wright, NAR’s interim CEO in a release.
One by one large brokerage firms have settled in the case, the most recent being Keller Williams, which reached a $70 million agreement in February. HomeServices of America, whose brands include Berkshire Hathaway HomeServices and Kentwood Real Estate, remains a holdout.
Listing agents and buyer agents can still communicate directly about commissions and sellers can still pick up those costs. Sellers might do that if they think it will generate more interest in their listings or set them apart. But not every seller will agree, and a buyer may be set on owning that house.
That is where things get more complicated. The agreement a buyer has signed with the agent will then leave the bill for services rendered on the buyer’s table. Buyers, already stretched to come up with down payments and escrow costs, not to mention elevated home prices, may lack the funds, killing a deal. Or their agents might agree to take a smaller cut.
“We shouldn’t have been fighting over the commissions. We should have been fighting to serve our customers better,” said Bret Weinstein, founder of Guide Realty in Glendale.
Weinstein said becoming a real estate agent comes with a low bar of entry. Most who get in do a minimal number of transactions, if any, in a given year. And horror tales abound of unaware consumers in the hands of unskilled agents.
“It will shake up the industry,” he said of the changes coming. “One day there will be an exodus of people leaving.”
Buyer agents who remain will pursue different models, he predicted. One camp will offer high-level service from skilled negotiators who can justify their costs. That is one reason top-performing agents aren’t fearful of what comes next, he said.
At the other end will be agents offering a lower level of services in return for discounted commissions. Expect more technology firms to emerge that will try to automate the buying process or lower costs in other ways.
Levine offers another scenario, one where consumers continue to do the legwork in researching neighborhoods and finding a place through online resources. They negotiate terms or hire someone to do that. Then a real estate lawyer is brought in to handle the contract and closing. The costs would be lower and the approach might appeal to repeat buyers.
“As of July that co-op is going away. There is no guarantee that a buyer’s agent will get paid,” Weinstein said.
It will be a brave new word for consumers and the real estate industry alike.
The Denver Broncos hosted eight tryout players at mandatory minicamp this week, including quarterback Sawyer Robertson. It sounds like the team has made decisions on those tryout players, and Robertson won’t be signed (at least not right now).
Instead, the Broncos are signing offensive lineman Reid Holskey (according to ESPN’s Jeremy Fowler) and cornerback Blake Cotton (according to the Denver Post‘s Parker Gabriel). Holskey (6-6, 306 pounds) spent time on the Houston Texans’ practice squad in 2025 before joining the New York Giants in January. He was cut by New York last month. Cotton (6-2, 195 pounds) is a rookie who spent last fall at Utah, totaling 30 tackles and seven pass breakups in 13 games.
The two moves came one day after Denver wrapped up minicamp. The 91-man offseason roster was already full, so the Broncos will need to make corresponding moves to make room for Holskey and Cotton on the roster.
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Sean Payton has seen enough. The Denver Broncos’ third practice of mandatory minicamp, which was set to happen on Thursday, has been canceled.
“Just schedule-wise, today will be our last day,” Payton said after Wednesday’s practice. “I just finished telling them that. It’s unusual because there’s a lot of packing, a little bit more than normal when you’re moving into another facility. So when we’re back here, we’ll be in the new building.”
The Broncos are moving into their new state-of-the-art facility, but the decision to cancel the final practice of the offseason was motivated primarily by what Payton has seen thus far and how the team is shaping up.
Thus concludes the Broncos’ offseason training program, which featured eight total practices as a team, four of which were open to the media. There was more on-field activity than that, including walkthrough practices unseen by the press, but in essence, we’re talking about eight sessions.
Some players have already begun to separate themselves in their respective competitions. Others have really popped, while some have failed to really stand out in any meaningful way.
By way of a Broncos stock report, let’s get to the biggest winners and losers of mandatory minicamp.
Winner: Bo Nix | QB
Nix finally returned to the practice field on Tuesday, the first day of minicamp. He was limited to individual drills only, but it was still great to see him out there.
On Day 2, though, Nix took another big step forward, participating in a 7-on-7 drill that included a highlight-reel touchdown pass to RJ Harvey. Just getting Nix back on the field was a big win for the Broncos, but seeing him progress over two days and look overall very sharp was more than a little encouraging.
Winner: Jaylen Waddle | WR
Waddle has been a lightning rod since the practices were opened to the media. He just looks different. That speed and explosiveness really add an element to the Broncos’ offense that has been lacking.
It’s been palpable. But arguably just as exciting is what Waddle’s teammates and coaches have been saying about him. Payton has called him a “force multiplier,” which is another way of saying that he makes everyone around him better.
Not that we really had reason to doubt it, but Waddle has been as advertised thus far, and then some.
Loser: Marvin Mims Jr. | WR
Mims is not listed as a loser because of any specific negative plays, like a dropped pass or a mental miscue. It’s just that, with other receivers, including Waddle, shining, generating buzz, and earning plaudits from Payton, Mims didn’t really.
Mims is a similar receiver type as Waddle, but the newcomer made it clear how much separation exists between them in practice. Now, Mims is still important to the Broncos, especially as a returner, and Payton did compliment his clutch gene and contributions in big games, but you have to wonder how he fits into the game plan on offense. That question still hasn’t been answered.
Winner: J.K. Dobbins | RB
Dobbins was his usually talkative self at minicamp, but the fact that he was healthy and out there doing his thing is a major win for the Broncos. It’s good to have him part of the daily process at Broncos HQ again because he’s one of those veterans that takes players under his wing, and elevates them.
Winner: Que Robinson | OLB
With the recent off-the-field drama the Broncos have dealt with, some extra attention was paid to the Broncos’ outside linebackers. Robinson, in particular, separated himself during minicamp.
His get-off is something else, and he was dispruptive during the Broncos’ team periods. Vance Joseph has said he views Robinson as a “future starter.” Pending Cooper’s situation, the future could be now, though Elliss will also have something to say about that.
Robinson had one heck of an offseason. I’m really looking forward to his second year.
Loser: Jonathon Cooper | OLB
After being arrested twice in the span of a week, the Broncos excused Cooper from mandatory minicamp. It would seem the Broncos want to create some distance from Cooper until his legal troubles are resolved, one way or another.
It’s a shame, in more ways than one. Beyond what legal ramifications might await Cooper, he’s very likely to be suspended by the NFL, and the Broncos releasing him at some point is not outside the bounds of the plausible. It’s a good thing that rush linebacker room is stacked.
Winner: Matt Henningsen | DL
None of these winners has been quite as surprising as Henningsen. He made a huge play on Day 1 of minicamp, tipping a Sam Ehlinger pass and returning it to the house.
Henningsen followed that up with another disruptive Day 2. He’s gone from being an after thought in the Broncos’ defensive line conversation to establishing himself as a bona fide threat for the roster.
Loser: Jahdae Barron | CB
Like Mims, Barron wasn’t bad during the offseason; he just didn’t pop, really, in any way. He broke up one pass on Day 2 of minicamp, but beyond that, there wasn’t much to see.
It will be interesting to see how Barron performs in training camp. We know the Broncos have high expectations for him, and a role on defense, even if as a depth piece, will be created for him, but I was hoping to see more signs of a Year-2 leap by now.
Winner: Jonah Coleman | RB
Another as-advertised player. Coleman has proven he’s ready for the NFL, which was partly what attracted the Broncos to him in the draft.
Coleman stood out in a major way at minicamp and made it clear that the Broncos have more than just a J.K. Dobbins insurance policy on their hands. Coleman is a force to be reckoned with.
Winner: Tyler Onyedim | DL
Like Coleman the Broncos’ first pick in the 2026 draft has looked NFL-ready. The Broncos still haven’t signed Onyedim, but that didn’t stop him from participating in the offseason program, which is a good harbinger.
Rocking the No. 98 jersey, it’s easy to mistake Onyedim for the guy he was drafted to replace: John Franklin-Myers. That’s especially true when the rookie is out there making plays like JFM. Onyedim has earned praise from his teammates, including the All-Pro Zach Allen.
Winner: Evan Engram | TE
Engram looked very good in minicamp this week. He looked like a big, athletic, smooth, explosive receiver, which is what he’s been in the NFL.
Engram wasn’t really all those things in his first year with the Broncos, but I’m hopeful that Year 2 will be different for the two-time Pro Bowler. He’s had a good summer.
Winner: Troy Franklin | WR
Franklin seems like the obvious No. 3 receiver in the pecking order. That doesn’t mean he’ll get the No. 3 snaps on an exclusive basis, though.
As the Broncos’ No. 2 last year, Franklin wasn’t able to fully live up to that, although he took some big steps forward in his second year. As the No. 3, it’s more his natural spot and that should allow him to continue to thrive in the offense, especially with the connection he has with Bo Nix dating back to Oregon.
Winner: Sam Ehlinger | QB
Ehlinger had a great offseason. He looked way more comfortable and far sharper in the offense in what is his second go-around in Payton’s offense.
Ehlinger was sharp this summer, and if he can continue to build on the foundation he’s created, it could create some uncomfortable conversations at Broncos HQ.
Loser: Jarrett Stidham | QB
Stidham has been less noteworthy this summer, but that doesn’t mean he’s been bad. In comparison to Ehlinger, though, Stidham wasn’t as good, which is curious, considering his standing as the team’s primary backup since 2023.
If Ehlinger ends up leapfrogging Stidham, what do the Broncos do? They’re holding a competition for QB2, and they have to be prepared for the possibility of Ehlinger winning it, especially after his strong summer.
If Ehlinger forces this issue, Stidham could become expendable. Stidham is very unlikely to be a cut candidate because of his contract, but as a trade piece? There’s a reason the rumor mill has been active on the Stidham topic this offseason. It’s something to watch.
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The Mecca Sports Bar in Denver will be allowed to continue operations after it reached a settlement agreement with the city. According to the Denver Department of Licensing and Consumer Protection, the business will be required to pay a $5,000 fine and have employees complete specialized training.
The bar had been under investigation for prostitution since 2024.
According to the Denver Police Department, there were two arrests for prostitution as a result of the investigation into the bar, in addition to a merchant guard license violation for failure to comply.
According to the city’s licensing department, the business will be under a probationary period, where if there are any other violations of law or rules and regulations, it could face harsher penalties, including license suspension or revocation.
Denver police investigators said they conducted three undercover prostitution stings at the bar. In every operation, officers said they were offered sex for money and told about a scheme where the women would overcharge for alcohol and keep the extra cash.
Mecca Sports Bar is located off West Mississippi Avenue and Federal Boulevard near Huston Lake Park and was formerly known as Club Dubai.
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