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.