LOS ANGELES — On Friday, The National Association of Realtors, or NAR, announced a settlement with groups of homesellers, which is expected to dramatically reduce the cost of buying and selling a home.

The NAR has agreed to pay out $418 million over four years as well as decoupling the standard 6% commission normally split between buyers and sellers’ agents.

Experts estimate real estate commissions are expected to fall 25% to 50%.

The agreement remains to be approved in federal court, and changes would go into effect in July 2024.