What’s Happened To Buyer Agents’ Commissions??!!
We are now 7 months into our industry’s practice of decoupled commissions, meaning a seller cannot be forced to pay a buyer’s agent. Are buyer’s agents still earning commissions in today’s market? Have the industry’s rule changes revolutionized real estate transactions like so many people prophesied?
Redfin reported last month that the average commission earned by a buyer’s agent in the final months of 2024 was 2.37%. Similarly, in all of my team’s transactions since the settlement, the average buyer’s agent commission has been 2.4%, with nearly all of them being paid by sellers not buyers. These are similar to historical levels earned pre-settlement, meaning sellers are still seeing value in buyer agent’s efforts and paying them appropriately.
Exactly one year ago on a prior Get Real episode, I calmly said “sellers will continue to compensate buyer’s agents at similar levels as they do today.” This stoic prediction was right and the loud fear-mongers were wrong.
In this era of sensational social media, please be wary of listening to the loudest people in the room. They may be the most entertaining, but that doesn’t necessarily mean they are the most trustworthy. Bottom line, the role and revenue of Buyer’s Real Estate Agents is alive & well.
Matt Sundermier's Memos on Real Estate & on Life 