A Month After NAR Settlement Changes, Agents, Buyers & Sellers Weigh In

It’s been over a month since the full implementation of NAR settlement changes. And for the most part, the news has been encouraging. 

It helps that we’ve seen a significant drop in mortgage rates, which, coupled with rising inventory, is lifting agents’ (and consumers’) spirits. 

That said, according to a recent survey of 516 real estate agents, conducted by Clever Real Estate, 64% oppose the new commission structure, and 86% believe it will cause some agents to leave the industry.

Agent Reactions to the NAR Settlement

Here’s a quick breakdown of agent sentiment regarding the NAR settlement changes and their impact on agents and the industry, based on findings from Clever’s survey.

• 48% of agents report a more pessimistic career outlook compared to before the settlement, while only 16% feel more optimistic.
• 64% of agents oppose the new commission structure—down from 70% earlier in the year—with “confused” being the most common reported sentiment.
• 72% of agents predict a negative impact on the industry, while just 20% expect a positive one.
• 66% of agents believe buyers will be more hesitant to use an agent, but only about one in five (22%) buyers agree. 
• 83% of agents plan to adopt new business strategies, with 35% planning to avoid sellers who refuse to help cover buyer agent fees.

Buyer and Seller Perspectives

Meanwhile, here’s how respondents weighed in on consumer sentiment: 

• 76% of agents believe the changes will negatively impact first-time home buyers—despite more than half of buyers (53%) supporting the settlement.
• 67% of homeowners support the changes, even though only 26% fully understand the Sitzer/Burnett lawsuit and the NAR settlement.
• 63% of homeowners planning to sell in the next year are more likely to do so, now that they “no longer” have to—nor are they as likely to feel pressured to—cover the buyer’s agent commission. 

Real Agent Survey August 2024

We also have the results of Real’s August Agent Survey of nearly 300 agents across North America, providing early insights into the NAR settlement’s impact on residential home sales.

The general consensus reports “minimal disruption in market activity and increasing agent optimism, driven by declining mortgage rates.”

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. 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.

Tamir Poleg

Founder and CEO of Real

7 Key Findings on Agent Sentiment from the Real Survey

1. Significant Majority of Agents Are Prepared for Change: Most agents feel ready for the NAR rule changes, with 59% feeling “very well prepared” and 30% “somewhat prepared.” Real provided resources like videos, tools, and roleplay sessions  (see the Real Buyer Playbook website for more details) to support agents.
2. Success in Securing Buyer Representation Agreements: Agents are finding it easy to secure buyer representation, with 65% reporting the process is “very easy” (32%) or “somewhat easy” (33%), while only 16% face challenges.
3. No Immediate Impact to Market Activity Observed: Over half (55%) of agents reported no change in market activity since the rule changes. Some observed a slight decrease (26%), but this may be seasonal rather than rule-related.
4. Most Buyers Expect Sellers to Cover Agent Compensation: Eighty-three percent of agents say buyers expect sellers to cover 100% of their agent’s commission, with another 10% expecting partial coverage.
5. Sellers Largely Willing to Pay Buyer Agent Commissions: Sixty-three percent of agents report sellers are frequently covering buyer agent commissions, with another 21% doing so occasionally. The Midwest leads with 67% coverage.
6. Majority of Sellers Continue to Offer Competitive Buy-Side Commission Rates: Fifty-five percent of agents report sellers still offer buy-side commissions of 2.5% or higher, while 30% note commissions below 2.5%, and flat-fee models remain uncommon.
7. Subset of Agents Foresee Modest Adjustments in Future Buy-Side Commissions: Although the majority of agents haven’t seen changes in buy-side commission rates yet, some foresee a gradual decline in the future. When asked about their expectations for buy-side commission rates, agents suggested the following adjustments for before and after the rule changes:

• • 49% expect commissions in the 2.6%-3.0% range, down from 57% before the rule changes.
  • 32% anticipate commissions in the 2.1%-2.5% range, slightly down from 35% pre-rule changes.
  • 10% now expect commissions in the 1.6%-2.0% range, up from just 3% prior to the changes.
  • 3% foresee earning commissions in the 3.1%-3.5% range, up from 2%, indicating a rise in optimism among some agents.
  • A small 2% expect commissions in the 1.0%-1.5% range, with this trend primarily seen in the South and West regions.

Key Survey Findings on Market Trends and Insights

According to Real’s survey results, the Agent Optimism Index for August reached its highest level since April 2024, with 38% of agents feeling more optimistic about the outlook for their primary market compared to one month ago, and an additional 9% felt “significantly more optimistic,” outweighing the 11% who reported feeling more pessimistic, with 4% significantly more so. Meanwhile, 38% of agent respondents maintained a neutral stance.

Based on the average agent response, the weighted Agent Optimistic Index reading showed a monthly increase from 57.2 in July to 59.3 in August, with scores above 50 signifying a net positive outlook. 

A 2.3-point increase in the U.S., reaching 59.4, was the main driver behind the total increase. Optimism in Canada—which can be volatile due to the smaller sample size—fell 8.3 points to 50.0. 

Here are the three key insights provided on the housing market:

• Market Power Shifts to Sellers: 41% of agents now report a seller’s market—up from 33% in July—while only 20% see a buyer’s market, down from 25%.
• Transactions Continue to Decline: The Transaction Growth Index rose slightly to 41.6 in August but remains below 50, signifying fewer home sales year-over-year.
• Affordability Still the Top Concern: Affordability/mortgage rates remain the biggest challenge for buyers (53%), though we’ve seen some improvement from July. Inventory concerns and economic uncertainty have both increased.

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. With mortgage rates easing, our agents are optimistic that improving affordability will reignite housing market activity, creating more opportunities for buyers and sellers alike.

Sharran Srivatsaa

President of Real

For a summary presentation of these results, download Real’s investor relations report released on September 26, 2024.