A
recent report reveals that despite initial concerns, commission rates have actually increased since the National Association of Realtors' policy changes took effect. The changes, which were negotiated to settle landmark lawsuits brought by sellers, moved offers of compensation off MLSs and required agents to get signed agreements before showing homes.

    Key findings show that buyer agent commissions are up in the first year, with an average commission rate of 2.43% this spring, a slight increase from 2.38% last year. Commissions have also increased across all home price tiers, ranging from 2.52% for homes under $500,000 to 2.21% for homes over $1 million.

    The market's current favorability towards buyers has allowed them to demand that sellers pay their agents' commissions. As a result, buyer agents are using this leverage to negotiate higher commission rates with clients. However, it remains to be seen whether this trend will continue when the market shifts in favor of sellers.

    Industry experts believe that a market shift and increased activity will determine the impact of the policy changes on agent commissions. For now, the biggest changes have been earlier signed buyer agent agreements and more discussions about commission rates, which NAR sees as positive developments promoting consumer choice and transparency.

    The trend of homebuyers directly contacting listing agents to avoid paying two commissions is also emerging, but it's unlikely to lead to significant commission discounts for the agent handling both sides. To combat this trend, experts advise buyer agents to focus on being trusted advisors and providing value to their clients.