The new real estate agreement changes the process of buying and selling homes in America.

Washington, D.C. CNN - A settlement announced by the National Association of Realtors on Friday that ended its legal battle with some home sellers could dramatically change the way Americans buy and sell theirhouses. The agreement would essentially tear down the rules that many critics believe are driving up home prices. The new rules are likely to be fairer for buyers and sellers facing the most unaffordable housing market in a generation. But even after the $418 million settlement takes effect in July following court approval, some things will remain familiar.

Commissions won't disappear, and they will still be negotiable. Buyers' and sellers' agents will still be able to split commissions. Here's what these changes mean for you.

One of the new rules

Prohibits the inclusion of agent compensation in listings on local portals known as multiple listing services.

Other change

requires brokers to subscribe to multiple list services - many of which are owned by NAR subsidiaries.

• Changes to the commission structure will reduce them by 25% to 50%, according to financial research firm TD Cowan.
• Commission information is no longer allowed on the MLS and must be shared with buyers' agents and brokers separately.

Even if the letter of the agreement allows for cooperation, how that agreement is perceived may still reevaluate agents' attitudes toward cooperation and consumers' attitudes toward payment,” Glenn Kelman, CEO of brokerage firm Redfin, said in a statement.

A recent study by the Federal Reserve Bank of Richmond

showed that using a value-based commission model - in which buyers' agents earn money just for viewing a home, rather than from a percentage of the sale of the property itself - could save consumers more than $30 billion a year.

• Researchers have found that a cap on commissions will help lower prices for buyers and sellershousesBut at the same time a minimum level of commission will be required to support salesreal estatelow cost.
• The new rules raise concerns about how first-time or low-income buyers and sellers will react.

Change can transform the real estate business, change the way transactions work and reduce costs. “Even if the letter of the agreement allows for cooperation, how that agreement is perceived may still reevaluate agents' attitudes toward cooperation and consumers' attitudes toward payment,” Glenn Kelman, CEO of brokerage firm Redfin, said in a statement.

Michael Dauner, Broker-Associate with Coldwell Banker Realty

“It's going to be difficult for people who only have a license on paper and don't understand how to demonstrate their value to buyers or sellers to stay in business.”