Post-Settlement, Buyer Agent Commissions RemainUnchanged

Post-Settlement, Buyer Agent Commissions Remain Unchanged All eyes are on buyer agent commissions after the NAR lawsuit settlement – which, so far, have remained unchanged. Post-Settlement, Buyer Agent Commissions Remain Unchanged All eyes are on buyer agent commissions after the NAR lawsuit settlement – which, so far, have remained unchanged.Why it matters: The commission settlement changed the mechanics of buyer agency, giving consumers more choice with agents competing on value; the buyer agent commission is a reflection of that value. This data is from the nation’s largest brokerages and represents about 55,000 closed transactions per month – or about 17 percent of the market. Dig deeper: There has been no change in average buyer agent commissions since the settlement took effect in August 2024. Historically, buyer agent commissions fluctuate based on a variety of factors including overall market conditions and seasonality.   For reference, the 0.06% annual decrease in the chart above equates to $245 on a median-priced, $409,000 home.   This data is national and figures will vary by market; the specific number is less important than the vector of change over time. The bottom line: A big part of the commission lawsuits was about consumer choice; replacing a default path with more transparency and more choice around buyer agent compensation. The evidence to-date doesn’t support the hype around this being a seismic shift in the industry – consumers still value a buyer agent the same as before.   It’s still early days and things may change in the future, but this is an important benchmark to set and an important foundational change for the industry. What really struck me about my podcast episode with Damian Eales, CEO of realtor.com, was the focus on focus. With tremendous industry challenges, a down market, and very strong competitors, there wasn't really a choice -- the company had to FOCUS. Smart, data-driven insights — I publish actionable intelligence that is clear, timely, and informs real estate industry leaders. To see more, check out my website, my podcast, or join my mailing list. Contextually yours, Mike Publications | Consulting | Podcast | Aboutwww.mikedp.comUnsubscribe