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EATTLE--(BUSINESS WIRE)--Redfin, a technology-powered real estate brokerage, has analyzed data on buyer's agent commissions and found that they have remained relatively unchanged since new rules took effect on August 17. The average commission for homes sold in October was 2.34%, down just one basis point from the previous month.

    Since January 2023, buyer's agent commissions have fallen by 17 basis points, from an average of 2.51%. Commissions trended lower after the National Association of Realtors (NAR) settlement, dropping from 2.42% in March to 2.35% in August. They remained at 2.35% in September before dipping to 2.34% in October.

    Redfin's Chief Economist Daryl Fairweather notes that agents are now having more conversations with buyers about agent fees and educating them on rule changes, which is a positive development for increased transparency. Traditionally, sellers paid both the buyer's agent commission and their own agent's commission. However, Redfin agents report that sellers are increasingly covering the buyer's agent commission in most transactions.

    In competitive markets, agents are seeing more negotiation over who pays the buyer's agent commission and how much they are paid. Jonathan Chvala, a Redfin Premier agent in Chicago, notes that sellers are often willing to pay 2% to a buyer's agent, leading to more frequent negotiations.

    Redfin's data shows that commissions have been declining gradually over the past decade, with the downward trend continuing over the past two years. The actual dollar amount paid for commissions has risen significantly due to increasing real estate values.

    Commissions have risen slightly for homes listed under $500,000, from an average of 2.41% in August to 2.43% in October. However, buyer's agent commissions for homes listed above $1 million fell from 2.24% in August to 2.11% in October.

    Redfin has always advocated for lower fees and transparency in the real estate industry. The company charges customers a listing fee as low as 1% and doesn't dictate how much compensation sellers offer to buyer's agents. Redfin's fees for buyer services are competitive, making it easier for buyers to navigate the market.

    For more information on Redfin's analysis of buyer's agent commissions, visit: https://www.redfin.com/news/buyers-agent-commission-october-2024