Homeowners are reverting back to old habits in the real estate market.
After giving them smaller commissions in 2024, sellers are paying buyer's agents 2.77% commissions this year, according to brokerage Clever Real Estate. Those buyer agents saw their commissions dwindle to 2.30% last year, as the industry adjusted to a major rule change.
The
Industry experts anticipated widespread shifts in the
"Although sellers are no longer required to pay the buyer's agent fee as part of the NAR lawsuit changes, many sellers' agents still recommend offering it as a concession," the brokerage's report read.
How commissions have shifted in recent years
Altogether, buyer's and seller's agents are collecting a combined 5.44% in commissions this year, up 12 basis points from last year. Seller's agents are receiving on average 2.77% of the transaction price. The total real estate commission has steadily decreased since 2021, when it was 5.50%.
The industry altered its century-old commissions practices late last year, after a jury awarded home sellers in a case against NAR and leading real estate players
A 109-page settlement, among other changes, banned buyer-brokers from listing their services as "free", and prohibited offers of compensation being made on Multiple Listing Services.
While analysts predicted impacts to affordability and industry relationships, concerns have largely failed to materialize. Numerous reports in the months following NAR's new rules have found
Where buyers and sellers are paying the most, and least commissions
Nationwide, average total commissions range from 4.92% to 6.03%, according to Clever. The fees increased in 39 states in the past year, although the brokerage reported most of those increases were minimal. Brokers are also charging lower fees in high-priced regions, as higher values offset their potential losses.
Consumers pay on average $44,282 to real estate agents in Hawaii-based transactions, the highest dollar amount for brokers in any state, Clever found. However, Michigan accounts for the highest average commissions at a combined 6.03%.
Meanwhile, agents in the traditionally pricier New Jersey are collecting the smallest combined commission rates at 4.92%. On a dollar basis, West Virginia real estate agents are earning just $9,048 between buyer and seller representatives. Some lower commissions could be the result of dual agency, where agents represent both sides of a home sale, Clever said.
