Back to top
Join us on LinkedIn Follow us on Twitter Like us on Facebook Follow us on Instagram
 
  OCTOBER RESEARCH STORE SUBSCRIBE LOG IN
AddControlToContainer_DynamicNavigation1

Redfin: Agent commissions holding steady after NAR settlement takes effect

Email A Friend Printer Friendly Version
0 comments
Market Data
Tuesday, November 12, 2024

New reports from Redfin show agent commissions have experienced little change since new rules related to the National Association of Realtors’ (NAR) settlement in Sitzer-Burnett went into effect on Aug. 17.

The average buyer’s agent commission for homes sold in October was 2.34 percent, down one basis point from 2.35 percent for homes sold in August. That is down from an average of 2.45 percent recorded a year ago, Redfin stated.

The Aug. 17 rule change was part of NAR’s settlement in a case where a jury found the trade organization and other defendants had violated antitrust laws by following NAR’s cooperative compensation rule. As of the settlement terms’ implementation, listing agents may no longer include a unilateral offer for the buyer’s agent commission in NAR-affiliated multiple listing services (MLSs), and agents must inform – and get agreement from – potential buyers about what they charge before they start touring homes.

“Redfin agents say the biggest difference since Aug. 17 is the need to educate customers about rule changes and have conversations about agent fees with buyers at the start,” Redfin Chief Economist Daryl Fairweather said. “Our agents see that as a positive, as it encourages more communication upfront and increases transparency around fees.”

According to Redfin’s analysis, buyer’s agent commissions have fallen 17 basis points since January 2023, when they averaged 2.51 percent. Commissions dipped following the NAR settlement, dropping from an average of 2.42 percent in March to 2.35 percent in August. Commissions remained at an average of 2.35 percent in September, before dropping by a single basis point to 2.34 percent in October.

“It’s too soon to say whether the trend since August is a continuation of, or departure from, the long-term trend of declining commissions,” Redfin stated in a release.

Fairweather said Redfin agents reported sellers are covering the buyer’s agent commission in most transactions, though more sellers are deciding not to proactively offer a commission and instead are waiting to see what buyers request in their offer.

“Sellers are more and more wanting to pay 2 percent to a buyer’s agent,” said Jonathan Chvala, a Redfin premier agent in Chicago. “Now we’re negotiating commission more frequently.”

Increased negotiations have not resulted in a significant decline in commissions according to Redfin’s data, but the real estate brokerage stated it was worth noting that many sales closed in September went under contract before the changes took effect. Agents and consumers, many of whom started working together before August, are still adjusting to the new rules.

“Commissions may face more downward pressure next year if we see a resurgence of bidding wars,” Fairweather said. “Sellers are becoming increasingly aware that commissions are negotiable and that if they have a desirable home, they may be able to get the buyer to cover some, or even all, of the buyer’s agent commission,”

“Of course, as in all real estate deals, any negotiation is dependent on how much demand there is for a property. Sellers who are struggling to find a buyer may even offer more to help attract more interest.”

Andrew Vallejo, a Redfin Premier agent in Austin, Texas, told Redfin he has not seen a difference in commission rates since the Aug. 17 rule changes, as sales in the Austin market have been sluggish.

“If you’re a seller, reducing the commission isn’t something you can save on right now,” Vallejo said. “That’s because the buyer may not be able to afford your house if they have to pay their agent out of pocket as well.”

Redfin noted that while commissions have been gradually decreasing over the years percentage-wise, the actual dollar amount paid for commissions has increased significantly because home prices have risen to all-time highs. 

Redfin also pointed out there was a difference in commission rates based on different price brackets. Buyer’s agent commissions for homes listed under $500,000, the most common type of transaction in Redfin’s data, rose slightly from an average of 2.41 percent in August to 2.43 percent in October. In contrast, buyer’s agent commissions for homes listed between $500,000 and $1 million decreased from an average of 2.25 percent to 2.24 percent.

This trend continued as the sales price went higher – buyer’s agent commissions for homes listed above $1 million fell from an average of 2.24 percent in August to 2.11 percent in October. Redfin stated this aligned with anecdotes from its agents, who reported downward pressure on commissions for high-end listings.

 

Today's other top stories
NS3 Preview: Panel discussion to explore ‘real-world approach to cybersecurity’
ALTA leaders tackle wire fraud, prepare members for FinCEN rule
American Eagle Title continues title plant expansion in Texas
Advocus hires new underwriter
FNF agency division hires new VP, Mid-Atlantic underwriting counsel


COMMENT BOX DISCLAIMER:
October Research is not responsible for the comments posted on its websites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.
Comments:

Be the first to leave a comment.

Leave your comment
Please enter a comment.
CAPTCHA Validation
CAPTCHA
Code:
Please enter the word displayed in the image above. Please enter the word displayed in the image above.
: 
Please enter your name.
: 
Please enter your email address.
This field must contain a valid email address.
Your Email is for reporting purposes only. It will NOT be displayed.
Popularity:
This article has been viewed 1768 times.


News by Topic   News by Edition   In-depth Reports   Events   Subscribe
Announcements
Conference Coverage
Cyberawareness
Industry News
Market Data
People on the Move
Technology
Trendsetters
The TRID Journey
 
April 7, 2025
April 21, 2025
May 5, 2025
May 19, 2025
June 2, 2025
Archives
 
2025 Voice of the Title Agent Report
2025 State of the Industry Report
Cybersecurity Today
2024 Title Technology
eClosing Innovations
Technology as a Compliance Tool
Trendsetters
Archives
 
 
National Settlement Services Summit (NS3)
Women's Leadership Summit (WLS)
Webinars
 
Newsletter Subscriptions
Free Email Updates
Try a Free Edition
  Resources   About   Other Publications  
 
Keys to Real Estate Podcast
Blog - Tuesdays with Mary
eClosing Solutions Showcase
Best Practices Provider Directory
Industry Partners
 
The Title Report
Contact / Editors
Social Media
Advertise
Request a Media Kit
Are You An Expert?
Subscriber Agreement
 
The Legal Description
RESPA News
Valuation Review
Dodd Frank Upate
 
                 
Copyright © 1999-2025 The Title Report
An October Research, LLC publication
3046 Brecksville Road, Suite D, Richfield, OH 44286
(330) 659-6101, All Rights Reserved
www.thetitlereport.com | Privacy Policy
VISIT OUR OTHER WEBSITES
> Valuation Review
> RESPA News
> The Legal Description
> Dodd Frank Update
> NS3 The Summit
> Women's Leadership Summit
> October Research, LLC
> The October Store


Loading... Loading...
Featuring:
  • Delivery 3X a week plus breaking news as it happens
  • Comprehensive title insurance industry news
  • Recent acquisitions, mergers, real estate stats
  • Exclusive in-depth coverage of the industry's hottest stories
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Comprehensive Dodd-Frank coverage
  • The latest information from the CFPB
  • Full coverage of Congressional hearings
  • Updates on all agency actions
  • Analysis of controversial provisions
  • Release of newest studies and reports
Sign up today and...
  • Be one of the first to know where NS3 is being held
  • Learn about NS3 speakers and sessions
  • Save on registration with Super-Early Bird rates
  • Discover the networking opportunities NS3 offers
  • Find out if CE credits will be offered for your area
  • And much more
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Preview the latest RESPAnews.com Top Story
  • RESPA related headline news
  • Quote of the Week
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Legal, regulatory and legislative information impacting the settlement services industry
  • News from HUD, Congress, state legislatures and other regulatory agencies
  • Follow the lobbying efforts of all the major national real estate services organizations.
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • The industry's only full-time newsroom
  • Relevant, up-to-date appraisal industry news
  • Covering the hottest stories and industry trends
NEWS BY TOPIC
NEWS BY EDITION
IN-DEPTH REPORTS
EVENTS
RESOURCES
FREE EMAIL UPDATES
ABOUT
SUBSCRIBE
Announcements
Conference Coverage
Cyberawareness
Industry News
Market Data
People on the Move
Technology
Trendsetters
Sponsored Content
Nominate a Trendsetter
What is Trendsetters
Current Edition
May 5, 2025
April 21, 2025
April 7, 2025
Archives
2025 Voice of the Title Agent
2025 State of the Industry
Cybersecurity Today
2024 Title Technology
eClosing Innovations
Real Estate Compliance Outlook
Technology as a Compliance Tool
Trendsetters
Archives
Nominate a Trendsetter
What is Trendsetters?
National Settlement
Services Summit (NS3)
Women's Leadership
Summit (WLS)
Webinars
Evolving Realtor Relationships
2025 Economic Outlook Series
CFPB's Shake-Up & Its Impact
Artificial Intelligence for Title
Industry and Regulatory Outlook
RESPA Updates You Need to Know
Strategies post-NAR settlement
Fraud Threats Facing Title
Evolving Consumer Relationships
Excess Equity
RESPA Compliance Essentials
Securing Your Cyber Network
Webinar Archives
Cyber Solutions Showcase
Keys to Real Estate Podcast
Title Insurance at Work
Blog - Tuesdays with Mary
eClosing Solutions Showcase
Executive Interview Series
Best Practices Provider Directory
Industry Partners
The Title Report
Contact Us
Social Media
Advertise
Request a Media Kit
Are You An Expert?
Subscriber Agreement