{"id":874466,"date":"2025-08-12T08:30:33","date_gmt":"2025-08-12T12:30:33","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/buyers-agent-commissions-tick-up-to-pre-nar-settlement-levels\/"},"modified":"2025-08-12T08:30:33","modified_gmt":"2025-08-12T12:30:33","slug":"buyers-agent-commissions-tick-up-to-pre-nar-settlement-levels","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/buyers-agent-commissions-tick-up-to-pre-nar-settlement-levels\/","title":{"rendered":"Buyer\u2019s Agent Commissions Tick Up to Pre-NAR Settlement Levels"},"content":{"rendered":"

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Buyer\u2019s Agent Commissions Tick Up to Pre-NAR Settlement Levels<\/b><\/p>\n

Redfin reports the average U.S. buyer\u2019s agent commission rose to 2.43% in the second quarter from 2.38% a year earlier<\/i><\/p>\n

SEATTLE–(BUSINESS WIRE<\/a>)–
\nThe average U.S. buyer\u2019s agent commission was 2.43% for homes sold in the second quarter, up from 2.38% a year earlier. That\u2019s according to a new report<\/a> from Redfin<\/a>, the real estate brokerage powered by Rocket.<\/p>\n

This press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20250812345440\/en\/<\/a><\/p>\n

\"Average<\/p>\n

Average commission paid to U.S. real estate agents representing buyers<\/p>\n<\/div>\n

\nIt was the third consecutive quarter that commissions ticked a little higher after new National Association of Realtors (NAR) commissions rules went into effect in August 2024.<\/p>\n

\nThe report is based on an analysis of Redfin\u2019s data on buyer\u2019s agent commissions for closed home sales. The analysis reflects national commission rates, using national, aggregated sales data from Redfin agents’ listings, deals referred by Redfin.com to partner agents, and deals where buyers used Bay Equity Home Loans.<\/p>\n

Commissions return to same level as when new NAR rules were announced<\/b><\/p>\n

\nCommissions are now back to the same level they were sitting at in the first quarter of 2024, when NAR first announced a settlement dictating new commission rules in response to a class action lawsuit brought by home sellers.<\/p>\n

\nImmediately after the settlement was announced, commissions declined, dropping to a low of 2.36% in the third quarter of 2024. They fell at that time partly because the settlement shed light on sellers\u2019 ability to negotiate commissions down.<\/p>\n

\nOver the past year, buyer\u2019s agent commissions have slowly but steadily increased back to pre-settlement levels. That\u2019s because in much of the country, buyers have negotiating power<\/a> over sellers, and that includes the ability to negotiate higher paydays for their agents.<\/p>\n

\nAs part of the settlement announcement in early 2024, NAR agreed to create new rules about the way commissions offered to buyer\u2019s agents are communicated. Here\u2019s how NAR describes the new rules:<\/p>\n

\n\u201cBuyers and their agents will need to reach an agreement regarding how the agent will be compensated for their services and put it in writing prior to touring a home. \u2026 Offers of compensation (when a seller or a seller\u2019s agent shares compensation with a buyer\u2019s agent) can no longer be shared on Multiple Listing Services (MLS). \u2026 Offers of compensation are still an option but must be communicated off-MLS if a seller chooses to make an offer available.\u201d<\/p>\n

Agents report differences in commission negotiations, depending on the market<\/b><\/p>\n

\nAs noted, the housing market has shifted in favor<\/a> of buyers. There were 500,000-plus more sellers than buyers in the U.S. housing market in June<\/a>, the biggest disparity since Redfin started keeping track in 2013.<\/p>\n

\nWith so few buyers in the market, sellers are more likely to pay a higher commission to close a deal. But the power buyers have over sellers varies from market to market.<\/p>\n

Andrew Vallejo<\/a>, a Redfin Premier real estate agent in Austin, TX, said most buyer\u2019s agents now request a commission of 3%, up from 2.5%-2.75% prior to the NAR settlement.<\/p>\n

\n\u201cAustin\u2019s market is slow, so buyers have a lot more power,\u201d he said. \u201cBuyers can walk away if the seller does not pay the buyer\u2019s agent commission, and they\u2019ll likely be able to find another home they like with a seller who is <\/i>willing to pay what the buyer is asking for to offload their home. Since the NAR settlement, there has been a lot more discussion about commissions with clients, and more sellers are trying to counter with a lower commission rate, but in most cases, in today\u2019s market, the buyer can stay firm.\u201d<\/p>\n

\nIn Kansas City, MO, many sellers are still paying the commission rate requested by buyers, according to local Redfin Premier agent Jo Chavez<\/a>.<\/p>\n

\n\u201cI’ve had more sellers ask about offering no commission, or a low commission, since the new rules went into effect. But very few have opted to counter below what a buyer\u2019s agent asks for,\u201d she said. \u201cThere may be a little more negotiation now, but the end result is still typically the same\u2014a seller paying 3%, or close to 3%, to the buyer\u2019s agent.\u201d<\/p>\n

\nIn Minneapolis, agents say some buyers are willing to be more flexible with commission requests for their agents.<\/p>\n

\n\u201cMost buyers in our market have been coming in with an expectation of a 2.7% commission to their agent,\u201d said local Redfin Premier agent Emily Olson<\/a>. \u201cThat said, I\u2019ve been seeing some flexibility lately, and I’ve had success negotiating it down to 2.5% in a number of cases.\u201d<\/p>\n

Commissions for homes under $500,000 rise to highest level since 2023<\/b><\/p>\n

\nCommissions rose slightly across all price tiers in the second quarter.<\/p>\n