DelPrete: Even more evidence that commissions aren’t dropping

This article was shared here with permission from Mike DelPrete for Inman Intel, a data and research arm of Inman offering deep insights and market intelligence on the business of residential real estate and proptech. Subscribe today.

All eyes are on buyer agent commissions after the National Association of Realtors 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.

EXTRA: Listing agents hold the line against downward commission pressure

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 percent 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.