realestate

One Year Later: The State of Real Estate Agent Commissions

Buyers and sellers adapt to evolving real estate rules, with commissions remaining a key consideration.

A
year after new rules aimed to shake up how real estate agents are paid, commissions remain largely unchanged, according to a Redfin report. The changes, which took effect in August 2024, required buyers to negotiate and agree on their agent's fees before starting their home search. In theory, this was meant to give buyers more flexibility and bargaining power to lower costs.

    However, most commissions are still being covered by sale proceeds, with average buyer's agent fees returning to historical norms after dipping in late 2024. The average U.S. buyer's agent commission for homes sold in the second quarter of 2025 was 2.43%, up from 2.38% a year earlier.

    Commissions tend to decline as home prices rise, and this pattern has continued after the rule change. For example, homes under $500,000 had an average commission of 2.52%, while those priced over $1 million averaged 2.21%. A separate analysis by Clever estimated the average buyer's agent commission at 2.67%.

    Many sellers are still covering the buyer's agent fee, leaving buyers with less leverage to push for a lower commission once they're ready to buy. As a result, the new rules have largely maintained the status quo.

    In some markets where demand is softening, sellers are offering to cover the commission as a way to make their property more attractive. However, in areas like Manhattan's soft market, sellers are still footing the bill, typically 2.5% to 3%, because they know shifting the cost to buyers would make their listing unappealing.

    Buyers should understand how commissions will be handled and meet with their agent before signing a buyer representation agreement to discuss the fee structure. A good buyer's agent earns their commission by negotiating the best price, flagging issues, and connecting buyers with trusted professionals.

Real estate agents gathered at conference discussing commission rates and industry trends nationwide.