Residential Real Estate News
Agent Commission Rates Continue to Slip Post NAR Settlement
The average commission rate for U.S. real estate agents has dropped to 5.32%, the lowest national level in five years, according to recent research by Clever Real Estate.
This rate reflects a 0.17% decrease from 2023's 5.49%, potentially signaling early effects of the National Association of Realtors (NAR) commission rate settlement, implemented in August.
The NAR's $418 million settlement addresses high commission costs that placed an outsized burden on sellers, removing the obligation for sellers to cover the buyer's agent commission.
Among surveyed agents, commission rates varied between 3.22% and 5.86%, depending on location, real estate firms, and market trends, with the rates typically open to negotiation.
For a home priced at the national median of $361,300, the current average 5.32% commission rate would equal around $19,222 in total fees. Typically, the seller's agent would receive approximately 2.74%, or $9,900, while the buyer's agent would receive 2.58%, or about $9,322.
"This slight reduction in commission rates could have broader implications for the real estate sector in the coming years," said Jon Stubbs, lead researcher on the commission report. "Agents are adapting their business models to stay competitive as the market adjusts to these new regulations."
Sellers looking to cut commission costs can choose companies like Clever that offer pre-negotiated lower rates with top agents, such as a 1.5% commission.
"Many sellers don't realize how flexible commission negotiations can be," Stubbs added. "This is a critical time for sellers to learn about their options, as even small commission reductions can result in significant savings."
