The current Zillow lawsuit centers on allegations that the company secretly steers buyers to its own network of “Premier/Flex” agents and takes large referral cuts, which could inflate costs for buyers and sellers without clear disclosure. At the same time, NAR commission settlements and new rules are reshaping who pays which agent, how buyer’s agents get compensated, and how transparent these fees must be.​

What the Zillow lawsuit is about
Recent class-action cases claim that Zillow uses its dominant portal to funnel buyers away from listing agents and toward Zillow-affiliated agents shown next to listings, even when those agents do not represent the seller. The suits allege Zillow can collect up to about 40% of an agent’s commission as a referral fee, and that this arrangement is not clearly explained to buyers and sellers, potentially keeping total commissions in the 5–6% range and driving up consumer costs.​

Plaintiffs argue that this “hidden middleman” model may violate consumer protection and real estate laws, including RESPA, by creating undisclosed incentives that encourage agents to prioritize lead volume and fees over each client’s best deal. These cases are still in early stages, but they highlight a bigger industry debate: Is your online “contact agent” click actually connecting you with the right advocate for you, or with the portal’s preferred partner?​

How this ties into NAR commission changes
Separately, big lawsuits against the National Association of Realtors led to a major settlement and rule changes that are rolling out nationally. The core claim was that long‑time commission rules effectively forced sellers to pay both agents’ fees and may have kept overall commissions higher than they needed to be.​

Key changes now include: sellers are no longer automatically expected to offer a set commission to buyer agents through the MLS, and those offer fields are being removed or restricted. Buyers must sign written representation agreements before touring homes, spelling out what services they get, how their agent is paid, and making it easier to negotiate compensation directly.​

What buyers should pay attention to
As a buyer, the big takeaway is that who you click on and how your agent gets paid matters more than ever. You may now be negotiating your buyer-agent fee directly, instead of it being quietly built into the seller’s side of the commission, and that can change your upfront costs and your strategy.​

Questions buyers should be asking any agent they meet online or through a portal:

“Do you work for me as my fiduciary, or are you just responding to online leads?”​

“Exactly how are you compensated, and are there any referral fees, lead fees, or portal fees baked into your commission?”​

“If a seller is contributing toward your fee, how does that get structured, and does it change how you approach negotiations for me?”​

Buyers who proactively negotiate representation and understand fees tend to be better positioned on both price and terms, especially now that commission structures are more flexible and transparent.​

What sellers and current homeowners should consider
For sellers, these lawsuits and rule changes may open the door to more options for how you structure commission and attract buyers. You can now decide whether and how much to contribute toward a buyer’s agent compensation rather than feeling locked into a “standard” total commission.​

Sellers should be asking:

“What are my realistic options for total commission and how could each affect marketing, showings, and buyer interest?”​

“If I offer or don’t offer a buyer-agent contribution, how will that impact my net, appraisals, and time on market?”​

“Are any portals or referral programs adding extra layers of fees between me, the buyer, and the agents involved?”​

For existing homeowners who are not yet ready to move, this is a good time to get an updated equity and market-position review so you understand how new commission models might affect your future sale and your next purchase.​

How to engage with me locally
All of this can feel confusing because the headlines are national, but the impact is very local and deal‑specific. As a Pacific Northwest‑area broker who lives in this new landscape every day, the focus is on protecting clients from hidden fee structures, explaining every dollar of compensation upfront, and aligning representation so that your agent is truly on your side, not the portal’s.​

If you are:

Thinking about buying in the next 6–12 months and want a simple breakdown of your options for paying (or negotiating) buyer‑agent fees under the new rules,

Planning to sell and want net‑sheet scenarios that compare different commission and buyer‑agent contribution strategies, or

A current homeowner who just wants a no‑pressure strategy session on how these lawsuits might affect your long‑term real estate plans,

reach out for a one‑on‑one consult tailored to your situation and your Tacoma‑area neighborhood. This is the moment to have a trusted advisor walk you through the fine print so you can use these changes to your advantage instead of being surprised by them at the closing table.​Zillow's in Troble