B
uyer's agents earned an average commission of 2.4% in the first quarter, a slight increase from the previous quarter but down from last year. According to Redfin's analysis of national sales data, this marks a shift in trends by price tier. For luxury homes selling for $1 million or more, commissions have decreased to 2.17%, unchanged from the prior quarter but lower than before the National Association of Realtors' (NAR) new rules took effect and last year's rate.
In contrast, buyer's agents are earning a slightly higher commission percentage for more affordable homes. For homes selling in the $500,000 to $999,999 range, commissions rose to 2.29%, up from the prior quarter but down from last year. For homes under $500,000, commissions increased to 2.49%, also up from the previous quarter.
The decrease in commission rates for high-priced homes is due to agents having more flexibility to reduce their fees while still earning a substantial income. Despite this trend, most sellers are still opting to pay buyer's agent commissions, although some exceptions exist. Agents report varying experiences, with some markets seeing a shift in commission practices and others maintaining the status quo.
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