Typical Buyer’s Agent Earns 2.55% in Commission, a Rate That Has Declined Since the NAR Settlement Was Announced in March, Redfin Reports
02 Agosto 2024 - 9:00AM
Business Wire
In dollar terms, the typical buyer’s agent
commission is $15,377 per deal, up marginally since January due to
rising home prices.
(NASDAQ: RDFN) — The typical U.S. home seller pays a 2.55%
commission to the real estate agent hired by their home’s buyer,
according to an analysis of MLS data by Redfin, the
technology-powered real estate brokerage. That’s down from an
average of 2.62% in January.
Commissions have been gradually declining over the past decade,
from an average of 2.89% in 2013 to 2.66% in 2023. It's possible
that news of a legal settlement by the National Association of
Realtors (NAR) in March has contributed to the recent decline by
making consumers more aware they can offer any commission to a
buyer's agent or none at all. Under the terms of the settlement, by
August 17 listing agents may no longer advertise a unilateral offer
of buyer’s agent commissions in MLSs that are affiliated with NAR
or in MLSs that have opted in to the NAR settlement. That has the
potential to change the homebuying and selling process in various
ways, and make it more likely that buyer agent commissions become
part of the offer negotiation.
“Redfin agents are reporting that commissions have been top of
mind for clients since the NAR settlement was announced, and some
sellers are asking about what it would mean to offer no commission
or a relatively low one,” said Redfin Chief Economist Daryl
Fairweather. “Still, even before the blitz of publicity around the
class-action lawsuits and NAR settlement, commissions were coming
down. That’s partly because of the competitive housing market
before and during the pandemic - which motivated some sellers to
offer a low commission because they knew they could still attract
buyers - and greater fee transparency.”
In dollar terms, the average commission paid to a buyer’s agent
in the U.S. is $15,377, up slightly from $15,124 in January. The
dollar amount has increased marginally even though the percentage
has declined because of the rise in home prices. The national
average commission is calculated as an average of actual buyers’
agent commissions in the multiple listing services (MLSs) that are
currently reporting on this data. This analysis looked at rolling
four-week periods through July 14, 2024.
Commission percentages have declined in all but three of the
most populous U.S. metros since the NAR settlement–but the
decreases are small
Broken down by metro area, commission percentages paid to
buyer’s agents have declined in all but three of the most populous
metro areas since the NAR settlement was announced. They increased
incrementally in one, and stayed flat in two. Most of the declines
are small, less than one-tenth of a percent. Redfin analyzed the 50
most populous U.S. metros and included in this analysis the 49 with
sufficient data.
- Commission percentages have declined most in Detroit: The
average commission paid to a buyer’s agent there was 2.87% during
the four weeks ending July 14, down from 3.18% in January. Next
come Cleveland (2.39%, down from 2.62%), and Miami (2.63%, down
from 2.84%).
- Commission percentages increased incrementally in Cincinnati;
the average there is 2.95%, up from 2.93% in January.
- Commission percentages are highest in Austin, TX (2.99%),
Cincinnati (2.95%) and San Antonio (2.91%). They’re lowest in
Nassau County, NY (1.95%), Providence, RI (2.05%), and Anaheim, CA
(2.11%).
Dollar-amount commissions are highest in expensive California
metros
In dollars, the average amount of money buyer’s agents earn in
commission is highest in metros where homes are expensive. In San
Francisco, the average commission was $50,734 during the four weeks
ending July 14. Next came San Jose, CA ($43,159) and Anaheim
($39,877).
Buyer’s agents earn the least amount of money per deal in places
where homes are relatively inexpensive, all in the Rust Belt:
Cleveland (average of $5,280 per deal), Detroit ($7,054) and
Pittsburgh ($7,918).
To read the full report, which includes local data, please
visit:
https://www.redfin.com/news/buyers-agent-commission-july-2024.
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate
company. We help people find a place to live with brokerage,
rentals, lending, title insurance, and renovations services. We run
the country's #1 real estate brokerage site. Our customers can save
thousands in fees while working with a top agent. Our home-buying
customers see homes first with on-demand tours, and our lending and
title services help them close quickly. Customers selling a home
can have our renovations crew fix it up to sell for top dollar. Our
rentals business empowers millions nationwide to find apartments
and houses for rent. Since launching in 2006, we've saved customers
more than $1.6 billion in commissions. We serve more than 100
markets across the U.S. and Canada and employ over 4,000
people.
Redfin’s subsidiaries and affiliated brands include: Bay Equity
Home Loans®, Rent.™, Apartment Guide®, Title Forward® and
WalkScore®.
For more information or to contact a local Redfin real estate
agent, visit www.redfin.com. To learn about housing market trends
and download data, visit the Redfin Data Center. To be added to
Redfin's press release distribution list, email press@redfin.com.
To view Redfin's press center, click here.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240802756092/en/
Redfin Journalist Services: Alina Ptaszynski
press@redfin.com
Redfin (NASDAQ:RDFN)
Gráfica de Acción Histórica
De Ago 2024 a Sep 2024
Redfin (NASDAQ:RDFN)
Gráfica de Acción Histórica
De Sep 2023 a Sep 2024