BiggerPockets Daily
Have Agent Commissions Changed? Here's What a New Analysis Says
Feb 13, 2025
Real estate agent commissions are under scrutiny following recent changes from the NAR settlement. Surprisingly, buyer's agent commissions have remained stable, while luxury home commissions are decreasing. In contrast, more affordable homes are facing slight increases. The podcast dives into the factors driving these trends and highlights how negotiations between agents and sellers are evolving. It also raises questions about the future of real estate fees and the potential for cost savings.
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Quick takeaways
- Despite the NAR settlement aimed at reducing commissions, buyer agent fees have remained largely unchanged, highlighting a stagnation in negotiation outcomes.
- The commission trends indicate that while luxury home sellers are reducing fees, those selling affordable homes are experiencing slight increases, reflecting market variability.
Deep dives
Impact of the NAR Settlement on Commissions
The National Association of Realtors (NAR) settlement has fundamentally changed real estate commission structures by ending the practice of automatic commission offers in the MLS. Traditionally, home sellers paid for both their listing agent and the buyer's agent, typically around 5% to 6% of the home's sale price. Following the settlement, buyers must now negotiate agent compensation separately, moving away from a default practice where sellers automatically covered the buyer's agent fees. This shift has led to increased transparency, with agents obligated to disclose their compensation, potentially empowering buyers and sellers in negotiations.
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