Sellers willing to pay buyer agents — but not in all markets 

Following NAR's March settlement, some of the biggest questions on agents' minds — particularly those on the buy side — were simply about survival: How will we get paid? And how will commissions be affected?

While industry leaders have asserted that buyer agency is here to stay, there has already been some evidence that commission percentages have fallen since the beginning of the year. But what are agents seeing on the ground? 

According to Redfin, anecdotal evidence suggests that most sellers are still willing to pay buyer agent fees, but there's notable variation by market.

Business as usual in slow markets; more negotiation in active ones

"We've found a tale of two markets," Redfin Chief Economist Daryl Fairweather said in the report. Where buyer demand is low, "agents report that most sellers are still willing to pay the buyer's agent commission to attract buyers, and agent fees are mostly the same as before," she noted. But in areas where inventory is tight and demand is high — think San Francisco or Boston — "agents report more instances of negotiation around fees, with sellers asking buyers to make their best offer rather than preemptively deciding what they want to offer a buyer's agent."

Fairweather added that in those more active markets, sellers may view buy-side compensation requests as contingencies of a sort — which means they can make an offer less attractive. "Now, like the amount of earnest money deposit or including an inspection contingency, the amount the buyer is asking the seller to pay her agent is a term that impacts the strength of the offer. That will likely drive fees down over time."

Buyers need help understanding agreements

Beyond compensation, agents are reporting that some clients are confused about buyer agreements, which are now required before an agent can show a home. 

And that may come as no surprise, given the wide variance in agreements.

Alex Galanis, a Redfin agent in San Diego, said a buyer client had reached out to a different agent first and was sent a 12-page agreement to sign. "She found it very off-putting," Galanis said, adding, "I don't think anyone should be forced to make such a big decision before we've had a chance to meet." 

In Phoenix, Redfin agent Van Welborn said "some buyers are confused at first" and have canceled tours out of concern that they'll be required to sign an exclusive agency agreement. 

Redfin CEO Glenn Kelman announced on Aug. 15 that buyers working with the brokerage's agents would only need to sign a simple, non-binding fee agreement in order to view homes. If they decided to continue working with the agent, they would then be asked to sign a more formal agreement. Zillow has also introduced a touring agreement for buyers not ready to commit to an agent.

Who should pay — and how much?

More sellers are now aware that commissions are negotiable, Redfin found, and they are more likely to ask their agents about buy-side compensation — and whether they still need to pay all or part of it. That decision often comes down to the market and the popularity of the listing.

"While I've always let my sellers know they can offer whatever commission they want and don't have to offer anything at all, my sellers are having the conversation with me in more depth than ever before," said Blakely Minton, an agent in Philadelphia.

D.C. agent Mary Bazargan said most sellers in her market are offering to pay the buyer agent, but she's concerned that "when the market heats up, a lot more buyers will be paying their own agents and that will put first-time homebuyers at more of a disadvantage."

Ultimately, said Las Vegas agent Fernanda Kriese, "it's all price-specific and seller-specific."

Gregory Eubanks, an LA agent, said that after he lays out the options for his sellers, most are still choosing to offer a set amount of compensation "because it sets them apart from listings that aren't proactively offering buy-side commission." Boston agent James Gulden agrees that "things haven't changed that much" since the new rules went into effect. 

But sellers are "welcoming the idea of having flexibility in how much they're willing to pay," said Portland agent Michelle Palmquist. "They're happy because they feel like they're in the driver's seat."