Commissions for buyer’s agents have stayed relatively stable since new industry rules were introduced on August 17, as revealed by Redfin’s latest analysis.
In October, the average commission was 2.34%, down only slightly from 2.35% in August, when the rules took effect, and lower than last October’s 2.45% average. Redfin’s data reflects closed October sales or pending sales through its agents, partner agents, or Bay Equity Home Loans but excludes Redfin-represented buyers to avoid skewing the industry-wide trend.
Buyer’s agent commissions have dropped by 17 basis points since January, moving from 2.51% to 2.34% by October. Following the National Association of Realtors (NAR) settlement, commissions fell from 2.42% in March to 2.35% in August. Redfin Chief Economist Daryl Fairweather noted that the main change since August is that agents now discuss fees with buyers upfront, encouraging transparency.
Typically, sellers cover the buyer’s agent commission, but in competitive markets, negotiation over payment responsibility is becoming more common. Jonathan Chvala, a Redfin agent in Chicago, shared that sellers increasingly aim to pay 2% to buyer’s agents, while more discussions about commissions take place as part of transactions.
As sellers adapt to new norms, Fairweather noted that competition might exert downward pressure on commissions next year, particularly if bidding wars return. High-demand properties may see sellers attempt to shift commission costs to buyers, while properties with lower demand might offer higher commissions to attract attention.
Some differences have emerged within price categories: for homes under $500,000, commissions rose slightly from 2.41% in August to 2.43% in October, while commissions for $1 million-plus homes dipped from 2.24% to 2.11%. Redfin, known for low fees, charges sellers as little as 1% and doesn’t mandate commission amounts for buyer’s agents.
Since August, Redfin has adjusted to the new NAR rules in a consumer-friendly manner, allowing buyers to sign a simple, non-binding fee agreement before touring homes, fostering a transparent and flexible approach to fees without requiring exclusivity.
About Redfin
Redfin 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®.
