Average buyer's agent commission ticks up under new NAR rules

"Redfin's analysis reflects national buyer's agent commission rates based on closed home sales from Redfin agents and partner agents. The slight increase comes roughly a year after new National Association of Realtors (NAR) commission rules took effect, stemming from NAR's commission lawsuit settlement. Buyer's agent commissions dipped to 2.36% in the third quarter of 2024 the lowest point recorded under the new system but have edged higher since then."

"Commission trends were largely steady across price tiers in the third quarter. For homes priced under $500,000, the average buyer's agent commission held at 2.52% up from 2.45% a year earlier and the highest level since the third quarter of 2023. Those priced between $500,000 and $999,999 saw average commissions of 2.32%, down slightly from 2.34% in the previous quarter and slightly above 2.31% a year earlier."

"If demand were high and homes were selling fast, I think we would see more sellers offering a lower commission to buyer's agents, Behling said. But now the market is much slower, and buyers have negotiating power over sellers. If anything, buyers can ask for a higher commission for their agents knowing they may be the only offer on the table."

Redfin's analysis uses closed home sales by Redfin and partner agents to estimate national buyer's agent commission rates. Buyer’s agent commissions hit a low of 2.36% in Q3 2024 under the new NAR commission rules, then rose slightly afterward. Redfin attributes the uptick partly to a slower housing market that gives buyers more leverage when negotiating commission rates. Chicago Redfin Premier agent Beth Behling reports little change locally and notes that slower demand allows buyers to request higher commissions for their agents. Commission averages varied modestly by price tier, with under-$500,000 homes at 2.52%, $500K–$999,999 at 2.32%, and $1M+ at 2.22%.

Read at www.housingwire.com