Homebuyers gain leverage as commissions edge upward
Real estate buyer agent commissions have climbed back to levels seen before new industry rules took effect, according to a Redfin analysis released this week.
The average US buyer agent commission reached 2.43% in the second quarter of 2025, up from 2.38% a year earlier. The increase marks the third consecutive quarter of rising commissions since new National Association of Realtors (NAR) rules were implemented in August 2024.
The commission rates have now returned to the same level as the first quarter of 2024, when NAR first announced a settlement in response to a class action lawsuit brought by home sellers.
Commissions initially declined after the settlement announcement, dropping to a low of 2.36% in the third quarter of 2024.
The shift reflects changing market dynamics that favor buyers. In June, there were more than 500,000 additional sellers than buyers in the US housing market, the largest disparity since Redfin began tracking the data in 2013.
“Austin’s market is slow, so buyers have a lot more power,” said Andrew Vallejo, a real estate gent in Austin, Texas, told Redfin. “Buyers can walk away if the seller does not pay the buyer’s agent commission, and they’ll likely be able to find another home they like with a seller who is willing to pay what the buyer is asking for to offload their home.”
Vallejo noted that most buyer agents now request a 3% commission, up from 2.5% to 2.75% before the NAR settlement.
Commission increases occurred across all price categories. For homes under $500,000, the average buyer agent commission reached 2.52%, the highest level since the third quarter of 2023. Mid-tier homes priced between $500,000 and $999,999 saw commissions average 2.34%, while luxury homes over $1 million had the lowest rates at 2.21%.
The NAR settlement created new rules requiring written agreements between buyers and agents before home tours and moved commission discussions off Multiple Listing Services.
“At the entry-level price point under $500,000, buyers are struggling to just purchase the house, so it is rare that a commission is negotiated,” Vallejo explained.
The analysis was based on thousands of transactions from Redfin agent listings, partner referrals, and Bay Equity Home Loans deals.
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