The National Association of REALTORS announced Friday an agreement where it will end the 6% commission that is routine in home sales.

In the settlement with homeowners, the association will pay $418 million in damages and end litigation on the matter.

Experts say that Americans pay $100 billion a year in real-estate commissions.

Andrew Lokenauth, who writes a finance newsletter, said on X the deal would end the standard 6% commission and lead to more competition among realtors. He said it could lead to a 30% reduction in commission.