Commissions are falling. For now.
After months of speculation—and years of trepidation—RISMedia can say definitively that at least in the short term, the percentage of a home’s sale price that agents and brokers claim as their hard-earned compensation has shrunk. Although still very early in the post-settlement era, this news is certain to worry many, as pundits and commentators have long claimed that a significant blow to commissions could permanently alter the residential real estate industry as we know it.
But savvy real estate professionals know there is always a path forward. RISMedia’s landmark 2024 Contract & Commission Study, covering the last year (both pre- and post-settlement) and surveying over 1,300 agents and brokers across the country, has the details, diving deep into the seismic ripple effect of recent policy changes and honing in on when, where and how real estate compensation has changed. This vital data can serve as a roadmap to a successful future, pinpointing which brokerage models, regions or agent profiles are bucking the commission negatives, or how companies are adjusting in the face of new rules.
This exclusive report offers the first independent, bird’s-eye view of a new era for real estate, allowing brokers and agents to make sure they are best positioned to thrive in a brave new world.
Key takeaways include:
- How much commissions have fallen, and what is most affecting commission rates—including region, brokerage model, agent experience and in-office work.
- What is changing with so-called “cooperative compensation,” and how many agents and brokers are switching to flat-fee or limited services.
- How companies are adapting fees, splits or incentives, and trying other innovations in the face of a shifting landscape.
- Whether agents and brokers are shifting their priorities between buyer and seller clients, and what has—or hasn’t—changed on the path to success.
- And much more!
Section 1: The Commission Conundrum
How much have commissions fallen, who is affected and what a deeper look at the data reveals about region, agent experience and more.
Section 2: The Compensation Story
What is happening with “cooperative compensation,” buyer contracts, and how agents are reacting to other policy changes.
Section 3: The Great Adjustment
How brokerage model affects agent compensation, including commission rates, splits, fees and cooperative compensation.
Section 4: The Future Agent
How agent behavior, focus and commitment affect commission rates, and how specialities and career values have—or haven’t—changed.
I haven’t noticed many changes. Except an extra document and phone call.
Reported commissions are dropping since we’re only capturing the seller side in mls. Who’s keeping track of buyer broker commissions being paid by buyers?
Jesse, I always love your posts. I would like to offer up another idea for reductions in commissions. Due to the substantially slow market over the past couple of years, I have noticed agents within my office, often asking permission to deviate (lower) their commission rate from our office policy. Most people, looking from the outside in, would say that it is because those agents don’t know how to articulate their value. However, some have asked to lower to assist the seller in saving them costs to help relocate, giving a repeat client a discount due to loyalty, reducing their compensation to assist in putting the deal together because negotiations had hit a stalemate between buyer and seller, etc.
Saying that commissions are going down due to the lawsuit, in my humble opinion, would be too much of a broad generalization. There are many other economic and political factors at play within the real estate world.
It’s naive to think there is any consensus regarding commissions a couple of months after changes were made. Commissions were already coming down well before August 17th.
Anyone going to the flat fee or limited service is going to fail, Fail, FAIL…and fail miserably. It’s not sustainable and it most certainly not scalable. Markets go up and down and commission will go up and down.