Buyer Agent Commissions: A Post-NAR Settlement Snapshot

Last year, the NAR settlement caused a lot of uncertainty around home buying and selling. With buyer agent commissions no longer required to be paid by sellers, many mobility programs have anxiously been watching to see how the real estate industry will change as a result of the settlement. A lot of relocation programs have held off on adjusting their policies, choosing a “wait and see” approach while preparing for exception requests from relocating employees who experience newly-charged commissions for buyers' agents. 

If you need a refresher on what was being expected for real estate commission management, you can also check out our previous post on “New U.S. buyer broker compensation scenarios”. 

But now it's time to ask an important question. What has actually changed since the NAR settlement? Let's take a look. 

A Post-NAR Settlement Snapshot

The real estate industry has been closely watching how commission rates would evolve in the wake of the settlement. Many expected commission rates to plummet for buyer agents, but recent data suggests the opposite. According to Two recent studies—one from AccountTECH and another from Redfin—commissions have largely rebounded and are stabilizing at pre-settlement levels.

According to the AccountTECH study, which analyzed over 224,000 transactions from nearly 1,300 real estate offices, commission rates initially declined following the August rule changes. However, by January 17, 2025, buyer agent commissions averaged 2.55%, identical to the rate a year prior. Listing agent commissions showed a modest recovery, rising to 2.73% from a post-settlement low of 2.69% in November.

AccountTECH's findings indicate that despite fears of a drastic reduction, market forces prevented drastic changes. The study noted that inventory levels and mortgage rates are likely to be the biggest determinants of commission trends moving forward. Market dynamics have helped stabilize commission rates faster than anticipated.

On the other hand, Redfin's research used a different dataset. They found that commissions declined year-over-year but remained steady in the latter half of 2024. Overall, buyer agent commissions in Q4 averaged 2.37%, a slight drop from the previous year’s 2.45%.

However, a breakdown by home price points revealed some notable trends:

• Homes priced under $500,000 saw a slight increase in buyer agent commissions in Q4, averaging 2.46%, though still below the 2.5% recorded a year earlier.
• Luxury home commissions ($1 million+) continued their downward trajectory, averaging 2.17%, down from 2.22% in Q3 and 2.33% a year prior. This decline aligns with predictions from Redfin economists that high-end home commissions would see further reductions in 2025.

It seems even high-end properties aren’t immune to the rules of supply and demand—perhaps an expensive reminder that not all gold-plated bathtubs come with a higher commission check.

What Agents Are Saying

Agent sentiment around commissions has been a mix of stability and concern. In Redfin’s survey of 500 agents:

• 48% said commission rates had remained unchanged since the settlement.
• 43% reported some declines.
• 54% noted an increase in commission negotiations.

A similar survey by The Real Brokerage found that most buyer agents (55%) and listing agents (64%) reported minimal change in commissions compared to 2023. Interestingly, only 13% of listing agents saw declines, while 9% of buyer agents actually reported commission increases.

Despite these stable trends, agent concerns about the future persist. In Redfin’s survey, 75% of agents expressed worry about declining commissions, and just over half expected further reductions in the coming year. However, some agents, like Redfin Premier agent David Palmer, believe the changes have improved transparency in the market and allowed for clearer conversations about compensation. As Palmer put it, "That's how I work, so I love it." This may suggest that some agents—especially those less experienced with commission negotiations—are finding the adjustment more challenging.

Market Optimism

While commission trends have been a focal point, agent sentiment regarding the broader real estate market is actually optimistic. The Real Brokerage’s December survey revealed record-high optimism levels, with 81% of agents feeling more positive about market conditions compared to November. Their "Agent Optimism Index" rose to 76.4—the highest level of the year—indicating a belief that the market is turning a corner after two years of historically low transaction activity.

Additionally, the market appears to be balancing out, with 30% of agents reporting a seller’s market and the same percentage identifying as being in a buyer’s market. Meanwhile, 40% of agents described current conditions as balanced. 

Looking Ahead

Commission rates haven't changed as much as initially predicted. Our experience at Plus Relocation reflects this as well. We've only seen a handful of relocating employees buying a new home who have had to cover all, or even some portion of, the buyer agent commission. 

That doesn't mean commission rates won't ever change. Factors such as mortgage rates, inventory levels, and potential further regulatory changes will continue to influence the real estate industry. But for now, stability seems to be prevailing across much of the market.