The article analyzes the relationship between home prices and agent commissions against the backdrop of buyer representation agreements and legislative bans on commission rebates. It discusses a decrease in commission rates from 3% in the 1990s to 2.7% in 2023, alongside an increase in the variation of commissions. The persistence of a 6% commission split is attributed to issues like steering and the performance of low-commission properties. Rising median home prices further complicate this landscape, suggesting that lower commission rates have not adversely affected agents as much as anticipated.
The data indicated that while buyer representation agreements mandated by the NAR have emerged, they were already required in 15 states prior to the settlement.
The report illustrates that even with commission rate declines from 3% to 2.7%, the industry norm of a 6% commission split remains intact.
Conclusion drawn states that the rising home prices since 1995 have negated any negative impact experienced by agents due to lower commission rates.
Low commission listings tend to remain on the market longer and sell less frequently, indicating challenges for low-commission properties to compete effectively.
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