Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.
A month ago, the real estate industry was anxiously awaiting the implementation of several cooperative compensation policy changes per the National Association of Realtors’ buyer-broker commission settlement.
Would sellers continue to offer commissions? If not, would buyers be prepared to shoulder added costs alongside rising mortgage rates and home prices? Would consumers eschew buyer representation in favor of dual agency deals?
According to The Real Brokerage’s latest survey of 300 agents, the early answers show business has largely continued as usual with 63 percent of agents reporting that homesellers are “frequently” covering buyer-broker commissions. Another 21 percent said homesellers’ showed “occasional” willingness to cover buyer-broker compensation, while 12 percent said they couldn’t identify emerging trends among their clients.
TAKE THE INMAN INTEL INDEX SURVEY FOR SEPTEMBER
When it comes to buyer-broker commission rates, most agents (55 percent) said homesellers are offering competitive rates of 2.5 percent or greater. Thirty percent said they’re seeing buyer-broker commission offers below 2.5 percent, and only 1 percent have seen a shift toward flat-fee models — all trends Real said suggest that commission compression may not be as dramatic as once feared.
Tamir Poleg, The Real Brokerage
“While it’s still early days, our internal data shows no significant changes in average commission rates for buy-side or sell-side transactions since the rule changes took effect,” Real Chairman and CEO Tamir Poleg said in a statement. “This stability suggests buyers and sellers continue to recognize the essential role agents play in navigating a home sale transaction, which is often the largest financial decision of an individual’s life.”
On the buy side, 65 percent of agents said they’ve found it “very easy” to get homebuyers to sign buyer representation agreements. Another 33 percent said it was “somewhat easy,” while 16 percent of buyer brokers said they’ve had challenges in adjusting to the new rule.
Agents said an overwhelming majority of homebuyers — 83 percent — expect homesellers to cover 100 percent of the buyer-broker commission. Meanwhile, 10 percent of agents said their buyers are prepared to cover a portion of the commission cost.
Looking forward, agents said they expect buyer-broker commissions to remain steady, or only slightly decline from historical norms.
Forty-nine percent of agents said they expect buyer-broker commissions to settle between 2.6 to 3.0 percent, 32 percent anticipate commissions between 2.1 and 2.5 percent, and another 10 percent said commissions will trend toward 1.6 and 2.0 percent. The outliers were agents who expected buyer-broker commissions to tick up to 3.1 to 3.5 percent (3 percent) and agents who expected agents to tailspin to 1.0 to 1.5 percent (2 percent).
Although home transactions continued to slide this summer amid mortgage rate, inventory and affordability issues, Real said agents are getting more optimistic about 2025, with its Agent Optimism Index hitting the highest level since April. Forty-seven percent of agents felt “more” or “significantly more” optimistic about the next 12 months, with 15 percent feeling “more” or “significantly more” pessimistic. Meanwhile, 38 percent of agents remained neutral about their prospects.
“We’re proud of the significant time and resources we invested in preparing our agents for these changes, ensuring they can focus on what they do best – delivering exceptional service and expertise in helping clients buy and sell homes,” Real President Sharran Srivatsaa said. “With mortgage rates easing, our agents are optimistic that improving affordability will reignite housing market activity, creating more opportunities for buyers and sellers alike.
