02/25/25
3 things to know about commissions this spring
As we prepare for a busy spring, our teams wanted to use this blog space to revisit one of the biggest stories of last year: real estate commissions. While the changes brought by the lawsuits against the National Association of REALTORS® may be muted so far, it’s always good to keep this topic on our radar.
Why? The expected uptick in listings and activity brings more opportunities for your clients to ask questions about commissions, and you should be ready for that. Plus, Redfin recently put out this survey showing little change in the amount buyer’s agents have been paid since the changes last year.
Here are three things, according to Redfin’s survey, to know about the topic as we head toward the traditional homebuying season.
Buyers and sellers are negotiating more. While commissions have been “largely unchanged” since the new NAR rules took effect in August, about half of real estate professionals report that commissions are being negotiated as part of the deal between buyers and sellers. Similarly, (54%) of agents said their clients are putting more effort into negotiations post-settlement.
Most sellers still cover the cost of the buyer’s agent. Both the Redfin survey and other sources conclude that sellers, in general, are still willing to pay for the buyer’s agent commission – even if many onlookers thought not doing so would be one of the most drastic changes.
“One thing is certain, if the intention was for sellers not to be paying buyers agents’ compensation, that’s a total fail,” said Summer Goralik, a real estate compliance consultant in that CNN story. “It’s continuing as is and just being repackaged in a different way.”
More agents think commissions have declined. Though Redfin’s data shows average commissions have stayed around 2.37% – actually up one-hundredth of a point during the quarter that the new rules started – 43% of REALTORS® surveyed said they believe commissions have fallen in their market. That feeling may be why 75% of agents say they are concerned about future falling commissions.
No matter what happens with agent compensation – or anything else in the real estate world – our teams love being part of your transactions. Trust us to take care of your title and escrow work whenever you need us!