Buyer-Broker Commissions Steady Despite Industry Changes: What It Means for You

Lisa Mailhot  |  September 30, 2024

Buyers

Buyer-Broker Commissions Steady Despite Industry Changes: What It Means for You

 

In the wake of the National Association of Realtors’ (NAR) buyer-broker commission settlement, many in the industry wondered what the future held. Would sellers continue to cover commissions? Would buyers shoulder additional costs, especially in an already strained market with high mortgage rates?

According to a recent survey by The Real Brokerage, business has largely stayed the course, with sellers still frequently covering buyer-broker commissions. Let’s break down the findings and what they mean for both buyers and sellers.

63% of Sellers Still Cover Buyer-Broker Commissions

Despite the anticipated shifts, the survey of 300 agents revealed that 63% of homesellers are still “frequently” covering buyer-broker commissions. Another 21% of sellers are willing to occasionally offer this coverage, leaving only a small percentage unsure of emerging trends.

This means that buyers, for the most part, are not having to bear the additional burden of covering their broker's fees. As Real Brokerage’s CEO Tamir Poleg puts it, “This stability suggests buyers and sellers continue to recognize the essential role agents play in navigating a home sale transaction."

Competitive Commission Rates Hold Steady

In terms of commission rates, 55% of agents reported that homesellers are offering competitive buyer-broker commission rates of 2.5% or greater. This finding puts to rest concerns about steep commission compression post-settlement.

Even though some agents (30%) noted commission offers below 2.5%, and only 1% observed a shift toward flat-fee models, the vast majority are seeing stability.

Buyer Representation Agreements: Still Easy to Secure

Agents are also having success getting buyers to sign representation agreements. Sixty-five percent of agents said it was “very easy,” while another 33% found it “somewhat easy,” further illustrating that buyers still value having an agent by their side in the buying process.

Most buyers (83%) expect homesellers to cover 100% of their agent’s commission, with only 10% of buyers being prepared to shoulder a portion of the cost themselves.

Optimism for 2025

Looking ahead, agents are increasingly optimistic about what the future holds. Real’s Agent Optimism Index reached its highest level since April, with 47% of agents feeling more hopeful about the next 12 months.

With mortgage rates potentially easing, agents anticipate a reignited housing market, which could open up more opportunities for both buyers and sellers.

Bottomline

Despite recent changes, the real estate industry continues to find stability in buyer-broker commissions. Whether you’re a buyer or seller, understanding these trends can help you navigate your next move. Let’s connect if you're thinking of buying or selling a home in Orange County this fall and beyond.

 

 

Reference: McPherson, Marian. "Buyer-Broker Commissions Remain Mostly Steady Since Aug. 17: Survey." Inman, September 26, 2024.

RECENT BLOG POSTS

Why Tiny Home Prices Are About to Surge—And What It Means for Orange County Buyers

New tariffs on Chinese imports are already causing sharp increases in tiny home and ADU prices. In high-cost regions like Orange County, this could significantly impac… Read more

The Hidden Risk in Buyer Love Letters (And How to Avoid It)

Buyer love letters might tug at heartstrings, but they can also tread dangerous legal ground. Learn the top three ways these letters could violate Fair Housing laws — … Read more

When Repairs Go Wrong: Can You Legally Withhold Rent in California?

Renters have more power than they think when it comes to repair issues in California. This blog breaks down your rights as a tenant, including when and how you can leg… Read more

Midwest Home Prices Surge Fastest in the Nation

The Midwest is on fire—and we’re not talking weather. Home prices in cities like Milwaukee and Detroit are soaring due to tight inventory and high demand. This blog di… Read more

Why Buyers Need Over $52K More Than Renters—and the Gap’s Growing

The income gap between renting and owning a home has surged to over $52,000 in 2025. While rent increases have slowed, home prices and mortgage rates remain high, maki… Read more

Gas Prices Drop, Inflation Slows—Here’s What That Could Mean for Your Mortgage

Inflation cooled in March thanks to falling gas prices, providing a temporary sigh of relief for mortgage markets. While rates aren't dropping just yet, lower pressure… Read more

Why Homebuyers Are Turning to Stocks for Their Down Payments

A new Redfin survey reveals that 1 in 5 homebuyers plan to sell stocks to fund their down payment. As market volatility shakes confidence, homeowners and renters alike… Read more

Why Strong Jobs Aren’t Sparking a Housing Comeback

Despite a strong March jobs report, new tariffs and rising economic uncertainty are casting a shadow over the housing market. Here’s how these national trends could pl… Read more

New MLS Rules Let Sellers Choose How to List

The National Association of Realtors® just introduced a new companion to its Clear Cooperation Policy: Multiple Listing Options for Sellers. This update offers sellers… Read more

We are excited to assist you in finding your perfect home

Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most