Since the National Association of Realtors® (NAR) agreed to a settlement with the plaintiffs in Sitzer/Burnett, many in the industry expressed concern that buyer agent commissions would plummet.
So far, the data suggests otherwise.
A new article by Mike DelPrete provides solid evidence that buyer agent commissions have for the most part remained unchanged since the settlement’s implementation on August 17, 2024.
Sellers are still making offers of buyer agent compensation. Because those offers give them their best shot at attracting qualified buyers and getting the price they want (or more) for their home.
We say this not to make light of buyer agent concerns about their livelihood but to share encouraging news that—
Despite some sellers joining in the complaint—amplified by Sitzer/Burnett—that it’s not fair to expect sellers to offer compensation to the buyer agent, most of them come to understand, with the help of knowledgeable real estate professionals, the benefits of doing so.
Real estate coach Tom Ferry shared Del Prete’s findings in a green screen Instagram post where he asked his viewers two questions:
- Have you changed your value prop with your clients?
- Have your commissions remained the same [or] have they gone up or down on average?
At the time of writing this, most of the commenters have said either “same” or “up.”
Current State of Buyer Agent Commissions
Since the NAR settlement changes took effect in August—about three months ago—buyer agent commissions have remained essentially unchanged across the U.S., with many agents, particularly those who increased their value proposition with clients, seeing an increase in buyer commissions.
As DelPrete points out, the average buyer agent commission reflects the value consumers place on the services they provide—which, so far, remains unaffected by the settlement.
Insights from National Data
The data behind DelPrete’s article includes transactions from the nation’s largest brokerages—accounting for about 55,000 closed transactions per month, or roughly 17% of the market.
Historically, buyer agent commissions have fluctuated based on overall market conditions and seasonal trends. Speaking of the latter, the 0.06% annual decline seen in the data is equivalent to a $245 reduction on a median-priced home valued at $409,000.
Those figures represent national trends. Outcomes can vary significantly by market.
Impact of the Lawsuit Settlement
A primary focus of the NAR settlement was to increase consumer choice.
But while the settlement has replaced the default path with more transparency and choice around buyer agent compensation, the data doesn’t indicate a dramatic shift in consumer behavior or industry practices.
Compared to before the settlement, consumers value buyer agents to a similar degree. While many agents have had to work harder in the past few months to show their value, the settlement itself did nothing to diminish it.
We’re still in the early days of post-settlement changes. The industry could continue evolving in response to consumer preferences and real estate market dynamics.
That said, current data does provide an important benchmark for tracking consumer response and how the industry adapts to these foundational changes.
