How are agents sharing compensation info?
Most are simply asking the listing agent directly, while sharing via websites is uncommon, a new survey found. And so far, commissions are largely unchanged.
With commissions no longer advertised on the MLS, how do buyers and their agents find out if a home seller is willing to offer compensation? Direct conversations between agents, according to a recent survey, are now the preferred method.
That's one of the many findings in a new report from HomeLight, a software platform that provides a variety of services to buyers, sellers and agents. The report — based on survey data from an online poll of nearly 800 top real estate agents — covered several topics including how agents are adapting to the Aug. 17 policy changes.
Communicating commissions: Now that offers of compensation are prohibited on multiple listing services, most agents — 67% — are simply communicating directly with agents on the other side of the transaction. The next most common method of sharing commissions info is via brokerage or agent websites, but only 8% of those surveyed listed that as a method.
Compensation largely unchanged: As for commission rates, most agents reported getting the same percentage as before the NAR policy changes. On the sell-side, 42% of the agents surveyed said sellers are agreeing to the customary 3% listing agent commission, while one-third said sellers are asking for 2.5%.
Buyers are paying a little less, with 24% of agents saying they are getting a 3% commission on the buy-side, while 34% said buyers are requesting a 2.5% rate.
This is consistent with other recent studies and what brokerage leaders have reported during earnings calls, suggesting that so far, commission fees have remained relatively stable.
Money is tight: Some in the survey noted that while buyers and sellers are getting past the initial wave of confusion, dealing with agent fees has become more difficult.
"Buyers are always short on money, and having to pay the agent's commission can be difficult if a seller is not willing to pay their brokerage commission," Duane Trinkle, an Indiana agent, said in the report.
How first-time buyers are coping: NAR's latest profile of buyers and sellers found that the share of first-time homebuyers has dwindled to an all-time low of 24% due to affordability challenges.
Asked how first-timers are able to handle high home prices and elevated mortgage rates, the most common answer was requesting mortgage rate buydowns from sellers, reported by 27% of respondents. The survey noted that while that tactic has been popular in the new home sector, it's also becoming more common with existing home sellers.
Gift funds were the next most common way first-time buyers are making deals work (cited by 23% of agents), followed by down payment assistance programs (16%) and moving farther away in search of affordability (13%).
A more balanced market — in some regions: For the past few years, sellers have had the upper hand in much of the country. But the HomeLight survey found that agents are more split on the state of the market in 2024, with wide regional differences. Among all agents, the largest share (42%) said they're seeing a balanced market, while 32% think it's a sellers market and 26% think the market favors buyers — findings that are almost identical to a survey conducted by Real Brokerage in July.
Broken down regionally, however, agents in the Northeast believe their market is still solidly ruled by sellers (69%). Those most likely to say their market is balanced were agents in the Pacific (52%), South Central (50%) and South Atlantic (46%) regions.
The Mountain region is evenly split between a buyers/balanced market at 44% each, while the Midwest tilts slightly to a sellers market (45%) over a balanced market (40%).