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ommission rates have largely recovered from the initial dip following industry practice changes, with some studies suggesting they're now back to pre-settlement levels. An analysis of over 224,000 transactions found that buyer and seller agent commissions are roughly equivalent to those a year ago, five months after the rule-change deadline. A separate report on buy-side commissions revealed small declines overall, but more variance at different price points.

    While some agents are concerned about future commission trends, around half say rates haven't changed much so far. The immediate aftermath of the NAR settlement saw fears that commission rates could plummet, but data from two recent studies suggests this hasn't come to pass. Commissions have rebounded, with buyer agent commissions averaging 2.55% and listing agent commissions averaging 2.73%.

    Market forces such as inventory levels and mortgage rates are likely to have the biggest impact on commissions going forward. A Redfin report found that overall buyer agent commissions averaged 2.37% in the fourth quarter, down from a year ago but relatively stable in the second half of 2024. However, there were some interesting trends when looking at commissions based on price point.

    For homes under $500,000, buyer agents earned 2.46%, up from the previous quarter but still down from a year ago. In contrast, for homes in the $1 million-plus range, buyer agents earned 2.17%, down from both the third quarter and a year ago. This downward trend supports predictions that luxury home commissions will fall in 2025.

    A recent agent survey found that nearly half of respondents said commissions had stayed about the same post-settlement, although 43% reported some declines. A slight majority also said more buyers and sellers have been negotiating commissions since the new rules took effect. Three-quarters of agents surveyed said declining commissions are a concern for their business's future, and just over half expect commissions to fall in the next year.

    Some agents, like David Palmer, a Redfin Premier agent in Seattle, haven't found the practice changes to be a big issue. Instead, they've added more transparency to the market, allowing for earlier conversations about commission rates. As Palmer noted, "This is the new world we're in," and he's adapting by staying consistent and talking openly with clients about what will get deals done.