{"id":79230,"date":"2025-02-04T05:00:35","date_gmt":"2025-02-04T13:00:35","guid":{"rendered":"https:\/\/www.redfin.com\/news\/?p=79230"},"modified":"2025-02-03T13:10:06","modified_gmt":"2025-02-03T21:10:06","slug":"agent-commissions-expensive-affordable-q4-2024","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/agent-commissions-expensive-affordable-q4-2024\/","title":{"rendered":"Commissions Have Risen Slightly For Affordable Homes, Fallen Slightly For Expensive Homes, Since NAR Settlement Took Effect"},"content":{"rendered":"<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Overall, buyer\u2019s agents are earning an average of 2.37% in commission. That\u2019s essentially unchanged since the new NAR rules took effect in August, but down a bit since the rules were announced last March.<\/span><\/i><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Breaking it down by price, the average buyer\u2019s agent commission for $1 million-plus homes has\u00a0 decreased to 2.17%, from 2.22%, since the rules took effect. For homes that sold for under $500,000, it has increased to 2.46%, from 2.42%.<\/span><\/i><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">More than half of U.S. real estate agents report that homebuyers and sellers have started negotiating over commissions more since the rules took effect, according to a recent Redfin-commissioned survey.\u00a0<\/span><\/i><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Overall buyer agent commissions have barely budged since new real estate commission rules went into effect on August 17, though they have come down a bit since the rules were announced nearly a year ago.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The average buyer\u2019s agent commission was 2.37% for homes sold in the fourth quarter. That\u2019s essentially unchanged from 2.36% in the third quarter, during which the new National Association of Realtor (NAR) commission rules <\/span><a href=\"https:\/\/www.cnn.com\/2024\/08\/17\/business\/nar-realtor-settlement-what-changes-wellness\/index.html\"><span style=\"font-weight: 400;\">went into effect<\/span><\/a><span style=\"font-weight: 400;\">, but down slightly from 2.45% a year earlier, before the <\/span><a href=\"https:\/\/www.nbcnews.com\/business\/real-estate\/national-association-realtors-approves-418-million-settlement-rcna143577\"><span style=\"font-weight: 400;\">new rules<\/span><\/a><span style=\"font-weight: 400;\"> were announced.\u00a0<\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-79232 size-full\" src=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2025\/01\/unnamed-2.png\" alt=\"\" width=\"616\" height=\"459\" srcset=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2025\/01\/unnamed-2.png 616w, https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2025\/01\/unnamed-2-300x224.png 300w\" sizes=\"(max-width: 616px) 100vw, 616px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">This is according to an analysis of Redfin\u2019s data on buyer\u2019s agent commissions for closed home sales. T<\/span><span style=\"font-weight: 400;\">he commission data was sourced from national, aggregated information from sales of Redfin agents&#8217; listings, deals referred by Redfin and closed by Redfin partner agents, or where a buyer used Redfin-owned <\/span><a href=\"https:\/\/bayequityhomeloans.com\/\"><span style=\"font-weight: 400;\">Bay Equity Home Loans<\/span><\/a><span style=\"font-weight: 400;\">. <\/span><span style=\"font-weight: 400;\">Please see the end of this report for more details on methodology.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The trends in buyer\u2019s agent commissions are slightly different when the data is broken down by price tier. Commissions are declining slightly for expensive homes, and rising slightly for more affordable homes. Please see the next section of this report for more details on commission by price tiers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s also worth noting that on a more granular level, overall commissions declined slightly the month the new rules went into effect. The average buyer\u2019s agent commission in July was 2.38%, then declined to 2.35% in August (the rules went into effect on August 17). But the average monthly commission ended the year at 2.38% in December, exactly where it was before the rules took effect.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The new commission rules stem from a legal settlement: In March, <\/span><a href=\"https:\/\/www.nar.realtor\/the-facts\/nar-settlement-faqs\"><span style=\"font-weight: 400;\">NAR agreed<\/span><\/a><span style=\"font-weight: 400;\"> to settle a series of class-action lawsuits in part by creating new rules about the way commissions offered to buyer\u2019s agents are communicated. Under the new rules, listing agents may no longer include a unilateral offer for sellers to pay the buyer\u2019s agent commission in NAR-affiliated MLS\u2019s. Redfin agents report that most sellers are still choosing to pay the buyer\u2019s agent commission, though there are some exceptions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Broadly speaking, agents tend to agree with the data showing commissions have declined only marginally. Roughly half (48%) of U.S. real estate agents say the average agent commission in their area has remained about the same since the NAR settlement took effect, according to a Redfin-commissioned survey of 500 U.S. real estate agents from a variety of brokerages fielded by Ipsos from December 13, 2024 to January 8, 2025. More than two in five (43%) say commissions have declined, while 4% say they have increased.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Agents also report homebuyers and sellers are negotiating over commissions more; more than half (54%) of agents said their clients are putting more effort into negotiations following the NAR settlement. One-third (34%) said negotiation efforts have remained about the same, and 6% report less negotiation.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cBuyers 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\u00a0 the buyer\u2019s agent,\u201d said <\/span><a href=\"https:\/\/www.redfin.com\/real-estate-agents\/desiree-bourgeois\"><span style=\"font-weight: 400;\">Desiree Bourgeois<\/span><\/a><span style=\"font-weight: 400;\">, a Redfin Premier agent in the Detroit area. \u201cWhen news of the settlement first came out, some sellers thought they were going to pay nothing to the buyer\u2019s agent. That\u2019s not happening; sellers are realizing most buyers are requesting the seller pay for their agent as part of the offer. It\u2019s an ongoing conversation, but people are starting to understand and asking more pointed questions.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Commission rates had started to <\/span><a href=\"https:\/\/www.redfin.com\/news\/real-estate-commissions-november-2021\/\"><span style=\"font-weight: 400;\">fall gradually<\/span><\/a><span style=\"font-weight: 400;\"> in the decade prior to the NAR settlement. But in dollar terms, buyer\u2019s agents earn more money because home prices have risen significantly.\u00a0<\/span><\/p>\n<h3>Commissions Are Falling For $1 Million-Plus Homes, Increasing for Homes Under $500,000<\/h3>\n<p><span style=\"font-weight: 400;\">When the commission data is broken down by price tier, a different trend emerges. Buyer\u2019s agents are earning a slightly smaller commission percentage for luxury homes than before the NAR settlement, and a slightly bigger percentage for more affordable homes.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For homes that sold for<\/span><b> $1 million or more<\/b><span style=\"font-weight: 400;\"> in the fourth quarter, the average buyer\u2019s agent commission was 2.17%. That\u2019s down from 2.22% in the third quarter, and down from 2.33% a year earlier.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For homes that sold for <\/span><b>$500,000 to $999,999<\/b><span style=\"font-weight: 400;\">, the average buyer\u2019s agent commission was 2.26%, essentially flat from 2.27% the prior quarter and down from 2.36% a year earlier.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For homes that sold for <\/span><b>less than $500,000<\/b><span style=\"font-weight: 400;\">, the average buyer\u2019s agent commission was 2.46%, up from 2.42% the prior quarter but down from 2.5% a year earlier.<\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"alignnone wp-image-79233 size-full\" src=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2025\/01\/unnamed-2-1.png\" alt=\"\" width=\"616\" height=\"481\" srcset=\"https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2025\/01\/unnamed-2-1.png 616w, https:\/\/www.redfin.com\/news\/wp-content\/uploads\/2025\/01\/unnamed-2-1-300x234.png 300w\" sizes=\"(max-width: 616px) 100vw, 616px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Commissions are falling a bit for high-priced homes because agents <\/span><a href=\"https:\/\/www.redfin.com\/news\/housing-market-predictions-2025\/\"><span style=\"font-weight: 400;\">have more room<\/span><\/a><span style=\"font-weight: 400;\"> to reduce their fees and still earn a healthy paycheck.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cLuxury sellers typically expect buyers will want them to cover 2% in buyer\u2019s agent commission. That\u2019s different from what we\u2019re seeing for more affordable homes; buyers of those homes are often asking sellers to cover a\u00a0 2.5% or 2.7% commission,\u201d said <\/span><a href=\"https:\/\/www.redfin.com\/real-estate-agents\/stayce-mayfield\"><span style=\"font-weight: 400;\">Stayce Mayfield<\/span><\/a><span style=\"font-weight: 400;\">, a Redfin Premier agent in St. Louis. \u201cBuyer\u2019s agents expect a lower commission for luxury homes, and they\u2019re mostly okay with it. They\u2019re still earning more money; 2% of a million-dollar home sale is a lot more than 2.7% of a $300,000 sale.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Redfin agents are reporting more negotiation over buyer\u2019s agent commission in competitive housing markets, and\/or for a particularly desirable home. If a seller gets multiple offers, they may be more likely to negotiate about who pays the buyer\u2019s agent, and how much.\u00a0<\/span><\/p>\n<h3>Most real estate agents expect commissions will fall<\/h3>\n<p><span style=\"font-weight: 400;\">Three quarters (75%) of real estate agents said declining commissions are a concern for the next five years of their career, according to the Redfin-commissioned agent survey. Just under one quarter said they\u2019re not concerned about declining commissions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">More than half (51%) of agents believe commissions will decline in the next 12 months, 38% believe they\u2019ll stay the same, and 5% believe they\u2019ll increase.\u00a0<\/span><\/p>\n<h3>Methodology<\/h3>\n<p><span style=\"font-weight: 400;\">This is according to an analysis of Redfin\u2019s data on buyer\u2019s agent commissions for closed home sales. The commission data is from several sources: N<\/span><span style=\"font-weight: 400;\">ational, aggregated information from sales of Redfin agents&#8217; listings, deals referred by Redfin and closed by Redfin partner agents, or those in which a buyer used Redfin-owned <\/span><a href=\"https:\/\/bayequityhomeloans.com\/\"><span style=\"font-weight: 400;\">Bay Equity Home Loans<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The analysis goes through the fourth quarter of 2024. The data includes a sample of thousands of transactions per quarter.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This analysis excludes deals in which Redfin agents represented the buyers because Redfin sets a competitive fee for buyer services, sometimes as low as 1.75%. That could skew the data so it reflects Redfin fees; the goal of this analysis is to track fees across the real estate industry. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Overall, buyer\u2019s agents are earning an average of 2.37% in commission. That\u2019s essentially unchanged since the new NAR rules took effect in August, but down a bit since the rules were announced last March. Breaking it down by price, the average buyer\u2019s agent commission for $1 million-plus homes has\u00a0 decreased to 2.17%, from 2.22%, since [&hellip;]<\/p>\n","protected":false},"author":13153,"featured_media":79231,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[8],"tags":[66,14,35],"coauthors":[124],"class_list":["post-79230","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing-market-news","tag-agents","tag-industry","tag-redfin-surveys"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Commissions Have Risen Slightly For Affordable Homes, Fallen Slightly For Expensive Homes, Since NAR Settlement Took Effect<\/title>\n<meta name=\"description\" content=\"Overall, buyer\u2019s agents are earning an average of 2.37% in commission. 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