Redfin Reports Real Estate Agent Commissions Haven't Changed Much Since the NAR Settlement Took Effect

Business Wire

16-05-2025

SEATTLE--(BUSINESS WIRE)--(NASDAQ: RDFN) — The average buyer's agent commission was 2.40% for homes sold in the first quarter, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. That's up slightly from 2.37% in the fourth quarter of 2024 and 2.36% in the third quarter of 2024—when the new National Association of Realtors (NAR) commissions rules went into effect—but down slightly from 2.43% in the first quarter of 2024, when the new rules were announced.
The report is based on an analysis of Redfin's data on buyer's agent commissions for closed home sales. This analysis uses national, aggregated sales data from Redfin agents' listings, deals referred by Redfin.com to partner agents, and deals where buyers used Redfin-owned Bay Equity Home Loans.
Commissions Are Flattening For $1 Million-Plus Homes But Rising for More Affordable Homes
When the commissions data are broken down by price tier, a different trend emerges. Buyer's agents are earning a slightly smaller commission percentage for luxury homes than before the NAR settlement, and a slightly bigger percentage for more affordable homes.
For homes that sold for $1 million or more in the first quarter, the average buyer's agent commission was 2.17%. That's unchanged from the prior quarter, but down from 2.22% in the third quarter of 2024—when the new rules took effect—and down from 2.30% a year earlier.
For homes that sold for $500,000 to $999,999, the average buyer's agent commission was 2.29%—up from 2.26% in the prior quarter and 2.27% in the third quarter of 2024, but down from 2.34% a year earlier.
For homes that sold for less than $500,000, the average buyer's agent commission was 2.49%—up from 2.46% in the prior quarter, 2.42% in the third quarter of 2024, and 2.48% a year earlier.
Commissions are lower for high-priced homes because agents have more room to reduce their fees and still earn a healthy paycheck.
Most Sellers Are Still Paying Buyer's Agent Commissions
Redfin agents report that most sellers are still choosing to pay the buyer's agent commission, though there are some exceptions.
Commission rates had started to fall gradually in the decade prior to the NAR settlement. But in dollar terms, buyer's agents earn more money because home prices have risen significantly.
Agents in some markets are reporting a shift in commissions, while agents in others are reporting that it's business as usual.
'Most sellers are choosing to pay a 2.5% or 3% commission to the buyer's agent, but I am seeing an increase in the number of sellers offering 2%,' said Stephanie Kastner, a Redfin Premier agent in Seattle.
Kastner noted that many of the 2% commissions she has seen are for new-construction homes on the outskirts of Seattle.
Chaley McVay, a Redfin Premier agent in Portland, OR, said she hasn't seen much of a change since the new rules went into effect.
'Sellers don't seem to have any issue paying a buyer's agent commission,' McVay said. 'But if we enter a seller's market similar to that of 2021 and 2022—with rampant bidding wars—sellers may be inclined to offer low or no commission to the buyer's agent, forcing buyers to bridge the gap. And if that happens, first-time buyers will be hit hardest because many of them can already barely afford to buy a home.'
Nearly Half of Recent Buyers and Sellers Did Not Try to Negotiate Agent Commission: Survey
Nearly 2 in 5 (37.4%) people who sold a home in the last year negotiated or tried to negotiate the commission paid to their agent, according to a Redfin-commissioned survey conducted by Ipsos in March-April 2025. The lion's share of recent sellers—45.9%—did not try to negotiate.
Buyers were less likely to negotiate, probably because they often aren't the one paying their agent. Just over one-quarter (27.2%) of people who bought a home in the last year negotiated or tried to negotiate the commission paid to their agent, the survey found. Nearly half (47.8%) did not try to negotiate.
To read the full report, including charts and methodology, please visit:
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, and title insurance 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. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.8 billion in commissions. We serve approximately 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 [e-mail]. To view Redfin's press center, click here.
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