Typical Buyer’s Agent Earns 2.55% in Commission, a Rate That Has Declined Since the NAR Settlement Was Announced in March, Redfin Reports
Redfin reports that the typical U.S. home seller pays a 2.55% commission to the buyer's agent, down from 2.62% in January. This decline may be influenced by the National Association of Realtors (NAR) settlement announced in March. In dollar terms, the average commission is $15,377, up slightly due to rising home prices. Commission percentages have decreased in most major metros since the settlement, with Detroit seeing the largest decline from 3.18% to 2.87%. San Francisco has the highest average commission in dollars at $50,734. The NAR settlement, effective August 17, will change how buyer's agent commissions are advertised in MLSs, potentially impacting the homebuying and selling process.
Redfin riporta che il venditore medio di una casa negli Stati Uniti paga una commissione del 2,55% all'agente dell'acquirente, in calo rispetto al 2,62% di gennaio. Questa diminuzione potrebbe essere influenzata dal risarcimento della National Association of Realtors (NAR) annunciato a marzo. In termini monetari, la commissione media è di $15.377, leggermente aumentata a causa dell'innalzamento dei prezzi delle case. Le percentuali delle commissioni sono diminuite nella maggior parte delle grandi aree metropolitane dopo il risarcimento, con Detroit che ha registrato il calo più significativo da 3,18% a 2,87%. San Francisco ha la commissione media più alta in dollari, pari a $50.734. Il risarcimento NAR, che entrerà in vigore il 17 agosto, cambierà il modo in cui le commissioni degli agenti degli acquirenti sono pubblicizzate negli MLS, influenzando potenzialmente il processo di acquisto e vendita delle case.
Redfin informa que el vendedor típico de una casa en EE. UU. paga una comisión del 2.55% al agente del comprador, una disminución respecto al 2.62% de enero. Esta caída puede estar influenciada por el acuerdo de la Asociación Nacional de Agentes Inmobiliarios (NAR) anunciado en marzo. En términos monetarios, la comisión promedio es de $15,377, ligeramente incrementada debido al aumento de los precios de las viviendas. Los porcentajes de comisión han disminuido en la mayoría de las grandes áreas metropolitanas desde el acuerdo, siendo Detroit la que ha experimentado la mayor caída, pasando del 3.18% al 2.87%. San Francisco tiene la comisión promedio más alta en dólares, que asciende a $50,734. El acuerdo de NAR, que entrará en vigor el 17 de agosto, cambiará la forma en que se publicitan las comisiones de los agentes del comprador en los MLS, afectando potencialmente el proceso de compra y venta de viviendas.
레드핀에 따르면 미국의 전형적인 주택 판매자는 구매자 에이전트에게 2.55%의 수수료를 지급합니다, 이는 1월의 2.62%에서 하락한 수치입니다. 이러한 감소는 3월에 발표된 전국 부동산 중개인 협회(NAR) 합의의 영향을 받을 수 있습니다. 금전적으로 평균 수수료는 $15,377로, 주택 가격 상승으로 인해 약간 증가했습니다. 수수료 비율은 합의 이후 대부분의 주요 대도시에서 감소했습니다, 디트로이트가 3.18%에서 2.87%로 가장 큰 감소를 보였습니다. 샌프란시스코는 달러 기준으로 $50,734로 가장 높은 평균 수수료를 가지고 있습니다. NAR 합의는 8월 17일부터 시행될 예정이며, MLS에서 구매자 에이전트 수수료가 광고되는 방식을 변경하여 주택 구매 및 판매 과정에 영향을 미칠 수 있습니다.
Redfin rapporte que le vendeur moyen de maison aux États-Unis paie une commission de 2,55% à l'agent de l'acheteur, en baisse par rapport à 2,62% en janvier. Cette diminution pourrait être influencée par le règlement de la National Association of Realtors (NAR) annoncé en mars. En termes monétaires, la commission moyenne est de 15 377 $, légèrement augmentée en raison de la hausse des prix des maisons. Les pourcentages de commission ont diminuité dans la plupart des grandes métropoles depuis le règlement, Détroit voyant la plus forte baisse passant de 3,18% à 2,87%. San Francisco a la commission moyenne la plus élevée en dollars, à 50 734 $. Le règlement NAR, qui entrera en vigueur le 17 août, changera la manière dont les commissions des agents des acheteurs sont annoncées dans les MLS, ce qui pourrait avoir un impact sur le processus d'achat et de vente de maisons.
Redfin berichtet, dass der typische US-Hausverkäufer eine Provision von 2,55% an den Käuferagenten zahlt, im Vergleich zu 2,62% im Januar. Dieser Rückgang könnte durch den Vergleich der National Association of Realtors (NAR), der im März angekündigt wurde, beeinflusst worden sein. In Dollar ausgedrückt beträgt die durchschnittliche Provision $15.377, was leicht gestiegen ist aufgrund steigender Immobilienpreise. Die Provisionssätze sind seit dem Vergleich in den meisten großen Metropolen gesunken, wobei Detroit den größten Rückgang von 3,18% auf 2,87% verzeichnet hat. San Francisco hat die höchste durchschnittliche Provision in Dollar mit $50.734. Der NAR-Vergleich, der am 17. August in Kraft tritt, wird die Art und Weise ändern, wie die Provisionen der Käuferagenten in den MLS beworben werden, was potenziell den Kauf- und Verkaufsprozess von Immobilien beeinflussen könnte.
- Commission percentages have been gradually declining over the past decade, from 2.89% in 2013 to 2.66% in 2023
- The average commission in dollar terms has increased marginally to $15,377 due to rising home prices
- Greater fee transparency and competitive housing market have contributed to the decline in commissions
- The NAR settlement may lead to changes in the homebuying and selling process, potentially affecting how commissions are negotiated
- Some sellers are considering offering no commission or a relatively low one, which could impact real estate agents' earnings
Insights
The recent decline in buyer's agent commissions, from
While the average commission in dollar terms has slightly increased to
The variation in commission rates across different metros is noteworthy. High-cost areas like San Francisco, with average commissions of
For investors, this trend signals a potential industry-wide transformation. Companies that can efficiently operate under lower commission structures while maintaining quality service may gain a competitive edge. Redfin's emphasis on technology and transparency could be advantageous in this evolving market.
However, the full impact of the NAR settlement remains to be seen. The upcoming changes in MLS listings and potential shifts in commission negotiations could further disrupt the industry, presenting both challenges and opportunities for agile companies like Redfin.
The gradual decline in buyer's agent commissions over the past decade, from
The regional variations in commission rates are particularly telling. Markets like Detroit, Cleveland and Miami have seen the most substantial declines, while others like Cincinnati have remained relatively stable. This disparity suggests that local market conditions play a important role in commission structures, which could lead to more localized pricing strategies for real estate services.
The increased awareness among consumers about negotiable commissions could drive further changes in the industry. As noted by Redfin's Chief Economist, some sellers are already inquiring about offering lower or no commissions. This shift in consumer mindset could lead to more competitive pricing among real estate agents and potentially disrupt traditional business models.
For companies like Redfin, this trend presents both opportunities and challenges. Their technology-driven approach and existing focus on transparency align well with these market changes. However, they may need to adapt their pricing strategies and service offerings to remain competitive in a market where commissions are increasingly under scrutiny.
The upcoming changes in MLS listings, set to take effect by August 17, could be a catalyst for further industry transformation. This could lead to more direct negotiations between buyers and sellers, potentially changing the role of buyer's agents and how they are compensated.
The NAR settlement's impact on buyer's agent commissions highlights significant legal and regulatory shifts in the real estate industry. The decline in average commissions from
A key legal implication is the change in MLS listings. By August 17, listing agents can no longer advertise unilateral offers of buyer's agent commissions in NAR-affiliated MLSs or those opting into the settlement. This change could fundamentally alter how commissions are structured and negotiated, potentially leading to more direct discussions between buyers and sellers about agent compensation.
The settlement's effects extend beyond just commission rates. It may lead to increased transparency in real estate transactions, potentially reducing antitrust concerns that have plagued the industry. However, it could also lead to new legal challenges as the industry adapts to these changes.
For companies like Redfin, compliance with these new regulations will be crucial. They may need to revise their practices around commission disclosures and negotiations to align with the settlement terms. This could involve updating their technology platforms, training agents on new procedures and potentially revising their business models.
The regional variations in commission rates also raise interesting legal questions. As some markets see more significant declines than others, it may lead to scrutiny of local real estate practices and potential claims of unfair competition or price fixing in areas where rates remain high.
Overall, this settlement and its aftermath represent a significant legal shift in the real estate industry, with potential for further regulatory changes and legal challenges as the market adapts to these new conditions.
In dollar terms, the typical buyer’s agent commission is
Commissions have been gradually declining over the past decade, from an average of
“Redfin agents are reporting that commissions have been top of mind for clients since the NAR settlement was announced, and some sellers are asking about what it would mean to offer no commission or a relatively low one,” said Redfin Chief Economist Daryl Fairweather. “Still, even before the blitz of publicity around the class-action lawsuits and NAR settlement, commissions were coming down. That’s partly because of the competitive housing market before and during the pandemic - which motivated some sellers to offer a low commission because they knew they could still attract buyers - and greater fee transparency.”
In dollar terms, the average commission paid to a buyer’s agent in the
Commission percentages have declined in all but three of the most populous
Broken down by metro area, commission percentages paid to buyer’s agents have declined in all but three of the most populous metro areas since the NAR settlement was announced. They increased incrementally in one, and stayed flat in two. Most of the declines are small, less than one-tenth of a percent. Redfin analyzed the 50 most populous
-
Commission percentages have declined most in
Detroit : The average commission paid to a buyer’s agent there was2.87% during the four weeks ending July 14, down from3.18% in January. Next comeCleveland (2.39% , down from2.62% ), andMiami (2.63% , down from2.84% ). -
Commission percentages increased incrementally in
Cincinnati ; the average there is2.95% , up from2.93% in January. -
Commission percentages are highest in
Austin, TX (2.99% ),Cincinnati (2.95% ) andSan Antonio (2.91% ). They’re lowest inNassau County, NY (1.95% ),Providence, RI (2.05% ), andAnaheim, CA (2.11% ).
Dollar-amount commissions are highest in expensive
In dollars, the average amount of money buyer’s agents earn in commission is highest in metros where homes are expensive. In
Buyer’s agents earn the least amount of money per deal in places where homes are relatively inexpensive, all in the Rust Belt:
To read the full report, which includes local data, please visit: https://www.redfin.com/news/buyers-agent-commission-july-2024.
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can have our renovations crew fix it up to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than
Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240802756092/en/
Redfin Journalist Services:
Alina Ptaszynski
press@redfin.com
Source: Redfin
FAQ
What is the current typical buyer's agent commission rate according to Redfin (RDFN)?
How has the buyer's agent commission rate changed since January 2024 for Redfin (RDFN)?
What is the average dollar amount of buyer's agent commission reported by Redfin (RDFN) in July 2024?
Which U.S. metro area saw the largest decline in buyer's agent commission rates since January 2024, according to Redfin (RDFN)?
What change will the NAR settlement bring to buyer's agent commissions on August 17, 2024, as reported by Redfin (RDFN)?
