First-time homebuyer commissions remain steady despite NAR settlement

"Only 7% of counselors surveyed said their first-time homebuying clients are paying lower real estate commissions than a year earlier. A larger share, 36%, disagreed with the belief that commissions have fallen."

"Counselors identified a lack of fee negotiation as a primary reason. Two-thirds of respondents said their clients never, rarely or only sometimes negotiate agent fees."

"Some respondents reported that buyers who try to negotiate commissions risk being labeled difficult by agents, which can limit their ability to find representation in tight local markets."

"The dynamic points to persistent cultural and structural resistance to price competition in brokerage services even after the settlement."

A study involving 223 housing counselors across 37 states reveals that only 7% of first-time homebuyers are paying lower real estate commissions post-settlement. Most counselors believe commissions have remained stable or increased. A significant barrier to lower fees is the lack of negotiation, with two-thirds of clients rarely negotiating agent fees. Additionally, buyers attempting to negotiate may be perceived as difficult, limiting their representation options. This indicates ongoing resistance to price competition in brokerage services despite recent regulatory changes.

Read at www.housingwire.com