This article was shared here with permission from Mike Delprete of Inman Intel, Inman’s data and research division, providing deep insight and market intelligence into the business of residential real estate and proptech. Subscribe now.
Buyer agent fees have been in the spotlight since the National Association of Realtors lawsuit settlement, but this has not changed so far.
Why it matters: The fee settlement changed the way buyer agencies work, giving consumers more choice with agents that compete on value. Buyer agent fees reflect that value.
The data comes from the nation’s largest brokerage and represents about 55,000 closed trades per month, or about 17% of the market.
Sidebar: Listing agents resist pressure to lower fees
Learn more: There has been no change in average buyer agent commissions since the settlement took effect in August 2024.
Historically, buyer agent commissions have fluctuated based on a variety of factors, including overall market conditions and seasonality. For reference, the 0.06 percent annual decrease in the chart above equates to $245 for a median-priced home of $409,000. This data is national and numbers vary by market. The specific number is less important than the vector of change over time.
Conclusion: The majority of Commission cases were about consumer choice, replacing the default route with more transparency and more choice regarding buyer agent compensation.
The evidence so far does not support the hype that this is a seismic shift in the industry. Consumers still value buyer agents as much as they used to. Although it is still early days and things may change in the future, this is an important benchmark to set and an important fundamental change for the industry.
Mike DelPrete is a strategic advisor and global expert in real estate technology, including Zavvie, an iBuyer offer aggregator. Connect with him on LinkedIn.
