Average Buyer’s Agent Commission Ticks Up Under Settlement Rules

The average U.S. buyer’s agent commission rose modestly in the third quarter, according to a new report from Redfin.

Buy-side commissions averaged 2.42% for homes sold during the period — up from 2.36% a year earlier. Commissions were essentially unchanged from the second quarter when they averaged 2.43%.

Redfin’s analysis reflects national buyer’s agent commission rates based on closed home sales from Redfin agents and partner agents.

The slight increase comes roughly a year after new National Association of Realtors (NAR) commission rules took effect, stemming from NAR’s commission lawsuit settlement.

Buyer’s agent commissions dipped to 2.36% in the third quarter of 2024 — the lowest point recorded under the new system — but have edged higher since then.

Redfin attributes the rise in part to a slower housing market that has given buyers added leverage.

In Chicago, Redfin Premier agent Beth Behling said she has seen little change since the new rules went into effect.

“If demand were high and homes were selling fast, I think we would see more sellers offering a lower commission to buyer’s agents,” Behling said. “But now the market is much slower, and buyers have negotiating power over sellers. If anything, buyers can ask for a higher commission for their agents knowing they may be the only offer on the table.”

Commission trends were largely steady across price tiers in the third quarter.

For homes priced under $500,000, the average buyer’s agent commission held at 2.52% — up from 2.45% a year earlier and the highest level since the third quarter of 2023.

Those priced between $500,000 and $999,999 saw average commissions of 2.32%, down slightly from 2.34% in the previous quarter and slightly above 2.31% a year earlier.

Homes selling for $1 million or more had average commissions of 2.22% — a tick up from 2.21% in the second quarter but below the 2.24% recorded a year ago.