A year after the National Association of Realtors' (NAR) settlement agreement, which was anticipated to drastically reduce real estate agent commissions, the housing market has shown remarkable resilience, defying earlier projections of widespread decline. Contrary to predictions of massive commission cuts and even falling home prices, current data suggests a much more stable environment. This unexpected steadiness in commission rates has provided a sense of relief for many brokerages, which had braced for a period of significant financial strain. The findings from various consulting firms and real estate entities paint a picture of an industry adapting without the severe disruption that many analysts had foretold, highlighting the robust nature of agent services and their perceived value.
Before September 30, 2024, the average real estate agent commission stood at 2.65%, as reported by RealTrends Consulting. Since the implementation of the business practice changes, this figure has seen a marginal uptick to 2.71%, representing a nominal increase of 0.06 percentage points. This trend is corroborated by Redfin's May 2025 data, which indicated a rise in agent commissions for properties sold under $500,000, moving from 2.42% in Q3 2024 to 4.49% in Q1 2025. Similarly, Anywhere Real Estate reported consistent commission rates. Their Q2 2025 earnings show Anywhere Brands, their franchise division, at an average commission of 2.41%, a slight dip from 2.42% a year prior. Anywhere Advisors, the firm's brokerage arm, even saw a minor increase from 2.36% in Q2 2024 to 2.38%.
During Anywhere's Q1 2025 earnings call, CEO Ryan Schneider noted that the actual changes to agent commission rates were less pronounced than initial forecasts used for their 2025 budget. Schneider emphasized the success of their agents and franchisees in navigating these shifts and consistently demonstrating their value to consumers. In the Greater Boston area, Linda O’Koniewski, broker-owner of Leading Edge Real Estate, observed "insignificant" changes to her firm’s commissions, with listing commissions slightly up by 0.02% and buyer-side commissions down by 0.03%. She concluded that the settlement has not led to the overall lower commissions many had anticipated.
Analysts who predicted a substantial drop in agent commission rates following the settlement have been proven incorrect. While industry critics hoped for a significant decrease, brokerages are relieved by the stable outcome. An analysis by AccountTECH in June 2024 warned that 79% of brokerages would become unprofitable if commissions fell to 2%, and 60% would be unprofitable at 2.5%. However, AccountTECH's May 2025 EBITDA Margin Index, released in July 2025, actually showed an increase to 3.4962%, surpassing the rate from a year ago before the new practices were enacted. Rick Haase, president of United Real Estate, echoed these sentiments, stating that the financial impact on his company has been "negligible" despite investing millions in agent training. He affirmed that agents, by effectively communicating their value, have successfully justified their fees to clients.
James Dwiggins, co-CEO of NextHome, views the increased negotiation between agents and clients as a positive development, arguing that agents are now compensated based on their demonstrated worth. O’Koniewski has noticed a similar pattern, where top-performing agents who are skilled negotiators maintain their pre-settlement rates, while newer or less assertive agents may earn slightly less. Although there were isolated instances in the early days where buyer's agents went unpaid due to a lack of signed representation agreements, O’Koniewski clarified these were exceptions, as agents quickly learned to secure proper documentation. Ultimately, the feared drastic decline in agent commissions has not materialized, showcasing the adaptability and inherent value of real estate professionals.
