Fees haven’t changed much since the NAR settlement terms went into effect, but early signs point to where things are headed, according to a rigorous study by AccountTECH and Inman Intel.
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Closely in line with October’s Inman Intel Index findings, despite concerns that fees may come under downward pressure after the National Association of Realtors’ antitrust lawsuit settlement provisions take effect According to an analysis by Account Tech, fees have remained roughly the same.
According to AccountTECH research, seller agent commissions have actually improved slightly on an annual basis, with the average commission rate received by seller agents in the 30 days following the Aug. 17 settlement at 2.77 percent, which is expected to increase in 2023. That’s up from 2.75 percent in the same 30-day period. The average selling agent commission in the 60 days following settlement was 2.738 percent, up from 2.724 percent in the same 60 days. In 2023.
Meanwhile, the decline in commission rates for buyer agents was minimal. In the 30-day period following settlement, the average commission for buyer agents was 2.545 percent, down from 2.595 percent in the same 30-day period in 2023. In the 60 days following settlement, the average commission for buyer agents was 2.486 percent. That’s down from 2.541 percent during the same 60-day period in 2023.
For its analysis, AccountTech scoured data from 625 real estate offices and looked at transactions where the purchase or sale transaction was reached within 60 days of the Aug. 17 settlement deadline. The total number of buyer-side transactions pending in the 60-day period for the 625 real estate offices analyzed was 17,358, down slightly from 19,274 buyer-side transactions during the same period in 2023. .
As of late September, 45% of agents told Inman Intel they had not yet seen a reduction in fees.
Additionally, less than 11% of home sellers told Intel in early October that they were taking a firm stance on paying buyer commissions, while a significant percentage of sellers told Intel that they were taking a firm stance on paying buyer commissions. Only 9% of intermediaries reported taking a hard line on the burden of Agency fees.
However, early findings from Inman-Dig Insights consumer research on the buy side of the transaction indicate that consumers are willing to negotiate a little more.
Nearly 1 in 5 active home buyers in early October said they would only agree to pay 1.5% or less of the home purchase price to a purchasing agent, according to an Inman-Dig Insights consumer survey. . Similarly, just under 19% of buyers told Intel that they had successfully negotiated lower buyer fees with their agents.
The Inman Intel Index survey was conducted from September 18th to October. April 4, 2024 441 answers from Inman readers. The Inman-Dig Insights consumer survey was conducted October 4-6, 2024 and sampled a diverse group of 3,000 U.S. adults ages 24 to 65.
The year-over-year decline in buyer-side transactions revealed in the AccountTECH study is something to watch over the coming year, the real estate accounting software company noted, even if the decline in transactions is due to interest rates, inventory or other factors. This situation could arise because it could be a result of the NAR settlement, although it is more likely the result of the economy.
For now, the decline in buyer-side fees is also within “normal market fluctuations,” Accounttech said. But analysts and other industry players will want to keep an eye on this.
“Industry watchers should continue to closely track this number, as if the 0.05% monthly decline trend of the past two months continues, buyer-side commission rates will reach 2% by June 2025. ”AccountTech’s report states.
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