(NewsNation) — Real estate agents representing home buyers were concerned that new rules in August would affect their commissions, but an October Redfin study found they remained relatively unchanged.
Their average commission was 2.34% in October compared to 2.35% for homes sold in August.
The National Association of Realtors implemented new rules on Aug. 17 that would prohibit offers of compensation on Multiple Listing Services and require agents working with buyers to enter into a written buyer agreement before touring a home.
Before the new rules took effect, commissions have fallen consistently since January 2023 when they were around 2.51%.
5 tips for first time homebuyers
“It’s too soon to say whether the trend since August is a continuation of, or departure from, the long term trend of declining commissions,” according to the Redfin study.
“Redfin agents say the biggest difference since Aug. 17 is the need to educate customers about rule changes and have conversations about agent fees with buyers at the start,” said Redfin Chief Economist Daryl Fairweather. “Our agents see that as a positive, as it encourages more communication upfront and increases transparency around fees.”
Typically sellers agree to pay the commissions for their agent and the buyer’s agent as part of the home sale, but with the competitive housing market, sellers are increasingly negotiating over who pays the buyer’s agent.
“Commissions may face more downward pressure next year if we see a resurgence of bidding wars,” Fairweather said. “Sellers are becoming increasingly aware that commissions are negotiable and that if they have a desirable home, they may be able to get the buyer to cover some, or even all, of the buyer’s agent commission.”
