{"id":79849,"date":"2025-05-16T05:00:07","date_gmt":"2025-05-16T12:00:07","guid":{"rendered":"https:\/\/www.redfin.com\/news\/?p=79849"},"modified":"2025-05-15T16:09:19","modified_gmt":"2025-05-15T23:09:19","slug":"real-estate-commissions-may-2025","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/news\/real-estate-commissions-may-2025\/","title":{"rendered":"Real Estate Agent Commissions Haven\u2019t Changed Much Since the NAR Settlement Took Effect"},"content":{"rendered":"<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong><i>Buyer\u2019s agents earned an average of 2.4% in commission in the first quarter. That\u2019s up slightly from when the new NAR rules took effect in August, but down slightly from a year earlier.<\/i><\/strong><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong><i>Broken down by price, the average buyer\u2019s agent commission for $1 million-plus homes was 2.17%\u2014down from 2.22% the quarter the new rules took effect. For homes that sold for under $500,000, it increased to 2.49% from 2.42%.<\/i><\/strong><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Buyer\u2019s agent commissions haven\u2019t changed much since new real estate commission rules went into effect in the U.S. on August 17.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The average buyer\u2019s agent commission was 2.40% for homes sold in the first quarter. That\u2019s up slightly from 2.37% in the fourth quarter of 2024 and 2.36% in the third quarter of 2024\u2014when the new National Association of Realtors (NAR) commissions rules <\/span><a href=\"https:\/\/www.cnn.com\/2024\/08\/17\/business\/nar-realtor-settlement-what-changes-wellness\/index.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">went into effect<\/span><\/a><span style=\"font-weight: 400;\">. But it\u2019s down slightly from 2.43% in the first quarter of 2024, when <\/span><span style=\"font-weight: 400;\">the <\/span><a href=\"https:\/\/www.nbcnews.com\/business\/real-estate\/national-association-realtors-approves-418-million-settlement-rcna143577\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">new rules<\/span><\/a> <span style=\"font-weight: 400;\">were <\/span><i><span style=\"font-weight: 400;\">announced<\/span><\/i><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><iframe id=\"datawrapper-chart-sYJU9\" style=\"border: none;\" title=\"Agent Commissions Little Changed Since NAR Rule Shift\" src=\"https:\/\/datawrapper.dwcdn.net\/sYJU9\/3\/\" width=\"600\" height=\"437\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Column Chart\" data-external=\"1\"><\/iframe><\/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. <\/span><span style=\"font-weight: 400;\">This analysis uses national, aggregated sales data from Redfin agents&#8217; listings, deals referred by Redfin.com to partner agents, and deals where buyers used Redfin-owned Bay Equity Home Loans. <\/span><span style=\"font-weight: 400;\">Please see the end of this report for more details on methodology. <\/span><\/p>\n<h3><b>Commissions Are Flattening For $1 Million-Plus Homes But Rising for More Affordable Homes<\/b><\/h3>\n<p><span style=\"font-weight: 400;\"><br \/>\nWhen the commissions data are 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 first quarter, the average buyer\u2019s agent commission was 2.17%. That\u2019s unchanged from the prior quarter, but down from 2.22% in the third quarter of 2024\u2014when the new rules took effect\u2014and down from 2.30% 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 2.29%\u2014up from 2.26% in the prior quarter and 2.27% in the third quarter of 2024, but down from 2.34% 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 2.49%\u2014up from 2.46% in the prior quarter, 2.42% in the third quarter of 2024, and 2.48% a year earlier.<\/span><\/li>\n<\/ul>\n<p><iframe id=\"datawrapper-chart-cHMLP\" style=\"border: none;\" title=\"Commissions for Homes Under $1M Are Inching Up\" src=\"https:\/\/datawrapper.dwcdn.net\/cHMLP\/3\/\" width=\"600\" height=\"457\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Interactive line chart\" data-external=\"1\"><\/iframe><\/p>\n<p><span style=\"font-weight: 400;\">Commissions are lower for high-priced homes because agents <\/span><a href=\"https:\/\/www.redfin.com\/news\/housing-market-predictions-2025\/\" target=\"_blank\" rel=\"noopener\"><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<h3><b>Most Sellers Are Still Paying Buyer\u2019s Agent Commissions<\/b><\/h3>\n<p><span style=\"font-weight: 400;\"><br \/>\nThe new commissions rules stem from a legal settlement. In March 2024, <\/span><a href=\"https:\/\/www.nar.realtor\/the-facts\/nar-settlement-faqs\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">NAR agreed<\/span><\/a><span style=\"font-weight: 400;\"> to create new rules about the way commissions offered to buyer\u2019s agents are communicated. Here\u2019s how NAR describes the new rules:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cBuyers and their agents will need to reach an agreement regarding how the agent will be compensated for their services and put it in writing prior to touring a home. \u2026 Offers of compensation (when a seller or a seller\u2019s agent shares compensation with a buyer\u2019s agent) can no longer be shared on Multiple Listing Services (MLS). \u2026 Offers of compensation are still an option but must be communicated off-MLS if a seller chooses to make an offer available.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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;\">Commission rates had started to <\/span><a href=\"https:\/\/www.redfin.com\/news\/real-estate-commissions-november-2021\/\" target=\"_blank\" rel=\"noopener\"><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<p><span style=\"font-weight: 400;\">Agents in some markets are reporting a shift in commissions, while agents in others are reporting that it\u2019s business as usual.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cMost sellers are choosing to pay a 2.5% or 3% commission to the buyer\u2019s agent, but I am seeing an increase in the number of sellers offering 2%,\u201d said <\/span><a href=\"https:\/\/www.redfin.com\/real-estate-agents\/stephanie-kastner\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Stephanie Kastner<\/span><\/a><span style=\"font-weight: 400;\">, a <\/span><a href=\"https:\/\/www.redfin.com\/premier\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Redfin Premier<\/span><\/a><span style=\"font-weight: 400;\"> agent in <\/span><a href=\"https:\/\/www.redfin.com\/city\/16163\/WA\/Seattle\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Seattle<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Kastner noted that many of the 2% commissions she has seen are for new-construction homes on the outskirts of Seattle.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.redfin.com\/real-estate-agents\/chaley-mcvay\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Chaley McVay<\/span><\/a><span style=\"font-weight: 400;\">, a Redfin Premier agent in <\/span><a href=\"https:\/\/www.redfin.com\/city\/30772\/OR\/Portland\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Portland, OR<\/span><\/a><span style=\"font-weight: 400;\">, said she hasn\u2019t seen much of a change since the new rules went into effect.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cSellers don\u2019t seem to have any issue paying a buyer\u2019s agent commission,\u201d McVay\u00a0 said. \u201cBut if we enter a seller\u2019s market similar to that of 2021 and 2022\u2014with rampant bidding wars\u2014sellers may be inclined to offer low or no commission to the buyer\u2019s agent, forcing buyers to bridge the gap. And if that happens, first-time buyers will be hit hardest because many of them can already barely afford to buy a home.\u201d<\/span><\/p>\n<h3><b>Nearly Half of Recent Buyers and Sellers Did Not Try to Negotiate Agent Commission: Survey<\/b><\/h3>\n<p><span style=\"font-weight: 400;\"><br \/>\nNearly 2 in 5 (37.4%) people who sold a home in the last year negotiated or tried to negotiate the commission paid to their agent, according to a Redfin-commissioned survey conducted by Ipsos in March-April 2025. The lion\u2019s share of recent sellers\u201445.9%\u2014did not try to negotiate.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Buyers were less likely to negotiate, probably because they often aren\u2019t the one paying their agent. Just over one-quarter (27.2%) of people who bought a home in the last year negotiated or tried to negotiate the commission paid to their agent, the survey found. Nearly half (47.8%) did not try to negotiate.<\/span><\/p>\n<p><iframe id=\"datawrapper-chart-guzeG\" style=\"border: none;\" title=\"How Buyers and Sellers Are Handling Commissions: Survey\" src=\"https:\/\/datawrapper.dwcdn.net\/guzeG\/5\/\" width=\"600\" height=\"381\" frameborder=\"0\" scrolling=\"no\" aria-label=\"Grouped Bars\" data-external=\"1\"><\/iframe><\/p>\n<h3><b>Methodology<\/b><\/h3>\n<p><span style=\"font-weight: 400;\"><br \/>\nThe survey data above are from a Redfin-commissioned survey of 4,000 U.S. residents conducted by Ipsos from March 28, 2025 to April 28, 2025. The relevant survey questions for this report are: <\/span><i><span style=\"font-weight: 400;\">When you bought your home, did you negotiate, or try to negotiate, the commission your agent\/Realtor earned from the sale?<\/span><\/i><span style=\"font-weight: 400;\"> and <\/span><i><span style=\"font-weight: 400;\">When you sold your previous home, did you negotiate, or try to negotiate, the commission your agent\/Realtor earned from the sale? <\/span><\/i><span style=\"font-weight: 400;\">This report includes responses from 191 people who indicated they bought a home in the past year, and 129 people who indicated they sold a home in the past year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The other commissions data in this report are based on Redfin\u2019s data on buyer\u2019s agent commissions for closed home sales. The commissions data are 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, and deals in which a buyer used Redfin-owned <\/span><a href=\"https:\/\/bayequityhomeloans.com\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Bay Equity Home Loans<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><span style=\"font-weight: 400;\"> The data includes a sample of thousands of transactions per quarter. The analysis excludes the majority of deals in which Redfin agents represented the buyer because the goal of this analysis is to track fees across the real estate industry.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Buyer\u2019s agents earned an average of 2.4% in commission in the first quarter. That\u2019s up slightly from when the new NAR rules took effect in August, but down slightly from a year earlier. Broken down by price, the average buyer\u2019s agent commission for $1 million-plus homes was 2.17%\u2014down from 2.22% the quarter the new rules [&hellip;]<\/p>\n","protected":false},"author":13346,"featured_media":79670,"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 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center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[43,51],"tags":[725,14,726],"dashboard":[],"coauthors":[125],"class_list":["post-79849","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing-equality-policy","category-policy","tag-commissions","tag-industry","tag-policy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.7 (Yoast SEO v27.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Real Estate Agent Commissions Haven\u2019t Changed Much Under New Rules<\/title>\n<meta name=\"description\" content=\"Buyer\u2019s agents earned a 2.4% average commission in Q1, up slightly from when the new NAR rules took effect but down slightly from last year.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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