Overall buyer’s agent commissions average 2.37 percent, essentially unchanged since August. Commissions rose for homes below $500,000, according to the new report.
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Buyers are negotiating agent commissions more now than they were before new rules took effect in August, but it’s not having much of an impact.
That’s according to a new report released Tuesday by Redfin, which found that commissions rose slightly for buyer’s agents on homes priced below $500,000, while they fell slightly for homes above that price point.
On average, buyer agents are earning an average of 2.37 percent commission, just a tick up from 2.36 percent when the rules took effect on Aug. 17. Still, that is down more since the first quarter of 2024, when the National Association of Realtors unveiled its settlement agreement and the framework of new rules around agent compensation that are now in effect.
In the first quarter, buyer’s agents were earning an average of 2.43 percent. That was down from 2.51 percent a year earlier, according to Redfin’s ongoing analysis of closed home sales for deals referred by Redfin agents and closed by Redfin partner agents or a sale where the buyer used Redfin’s Bay Equity Home Loans.
Courtesy of Redfin
For homes priced over $1 million, buyer’s agents earned 2.17 percent in the quarter, down from 2.22 percent when the rules took effect. For homes below $500,000, buyer’s agents earned 2.46 percent, up from 2.42 percent in August, Redfin reported.
More than half of agents reported that homebuyers and homesellers are negotiating over commissions more often after the settlement, according to a survey commissioned by Redfin.
Three in every four agents who responded to the survey said they were concerned that commissions would fall, and 51 percent said they expected commissions to fall in the coming year.
“Buyers and sellers are still asking about commissions, and sellers are still navigating what the new rules mean for how much they should offer or agree to pay the buyer’s agent,” said Desiree Bourgeois, a Redfin Premier agent in the Detroit area.
“When news of the settlement first came out, some sellers thought they were going to pay nothing to the buyer’s agent. That’s not happening; sellers are realizing most buyers are requesting the seller pay for their agent as part of the offer. It’s an ongoing conversation, but people are starting to understand and asking more pointed questions.”
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