The majority of homebuyers are still expecting sellers to cover their agent’s compensation, according to The Real Brokerage’s August 2024 agent survey. This comes even as the business practice changes outlined in the National Association of Realtors‘ (NAR) nationwide commission lawsuit settlement have been implemented across the country.
Real conducted its survey between Aug. 30 and Sept. 15, recording the responses of roughly 300 agents across North America. Overall, 83% of agents said their buyers still expect sellers to cover 100% of buyer agent commissions, while 10% said their buyers expect sellers to cover at least a portion of their agent’s fees.
The good news for these agents and their buyers is that 63% of agents said that sellers are “frequently” offering buyer agent compensation, while 21% report sellers are doing so “occasionally.” While it appears that most sellers are still offering some level of compensation, 12% of agents reported they were still unsure of what the emerging trend will be.
The survey also found that based on agents’ experiences, sellers in the Midwest are the most likely to cover buyer agent fees (67%), followed by the South (64%), the West (60%) and the Northeast (59%).
More than half (55%) of agents surveyed reported that sellers who do offer buy-side compensation are offering 2.5% or more, while an additional 30% of agents reported sellers are offering some level of compensation below that. Only 1% reported the usage of flat-fee compensation models.
Although this news is positive for agents and brokerages that need the revenue to support their already tight margins, they appear to be anticipating a shift to slightly lower commissions. According to Real’s survey, 49% of agents expect to earn commissions between 2.6% and 3%, down from 57% prior to the business practice changes going into effect in August. Another 10% expect commissions in the 1.6% to 2% range, up from a 3% share prior to the changes.
“While it’s still early days, our internal data shows no significant changes in average commission rates for buy-side or sell-side transactions since the rule changes took effect,” Tamir Poleg, the chairman and CEO of Real, said in a statement. “This stability suggests buyers and sellers continue to recognize the essential role agents play in navigating a home sale transaction, which is often the largest financial decision of an individual’s life.”
When it comes to how prepared agents feel to tackle these business practice changes, 59% reported that they felt “very well prepared” and 30% said they felt “somewhat prepared.” Only 5% said they were underprepared for the new rules. Additionally, the majority of respondents (65%) said it was “very easy” or “somewhat easy” to get a buyer representation agreement signed, while only 16% rate it as “difficult.”
“We’re proud of the significant time and resources we invested in preparing our agents for these changes, ensuring they can focus on what they do best — delivering exceptional service and expertise in helping clients buy and sell homes,” Real President Sharran Srivatsaa said in a statement. “With mortgage rates easing, our agents are optimistic that improving affordability will reignite housing market activity, creating more opportunities for buyers and sellers alike.”
Of course buyers want sellers to cover the compensation and sellers are doing so to get their homes sold.
If there were ten offers on every listing, it might be a differnt story.