It’s been a year since new rules changed how real estate agents are paid—where commissions stand now
Despite new rules designed to shake up how agents are paid, real estate commissions a year later remain largely unchanged, a new Redfin report reveals.
Effective Aug. 17, 2024, the changes upended decades of practice in which both the buyer’s and seller’s agents were typically paid from the seller’s proceeds, splitting a 5% to 6% commission on the home price. Under the new rules, buyers must negotiate and agree to their agent’s fees before starting their home search.
In theory, the changes were meant to give buyers more flexibility in how they pay for an agent’s services, offering a bargaining chip to help lower costs.
In practice, most commissions are still being covered by sale proceeds, according to a previous Redfin report. After dipping in late 2024, average buyer’s agent fees have returned to roughly historical norms — undercutting the negotiating power the rule change was meant to give buyers.
What buyer’s agents are getting paid
The average U.S. buyer’s agent commission was 2.43% for homes sold in the second quarter in 2025, up from 2.38% a year earlier, according to Redfin.
Commissions tend to decline as home prices rise, since a smaller percentage on an expensive home still results in a large payout. Redfin’s latest analysis for the quarter ending June 2025 shows that pattern has continued after the rule change.
Homes under $500,000: Average commission of 2.52%, up from 2.45% a year earlier — the highest rate for this tier since late 2023.
Homes between $500,000 and $999,999: Average commission of 2.34%, up slightly from 2.31% a year earlier.
Homes priced $1 million or more: Average commission of 2.21%, still below 2.24% a year earlier.
A separate April analysis by online brokerage Clever pegged the average buyer’s agent commission at 2.67%, up from 2.58% in the previous year.
‘The traditional model is still what’s playing out’
What buyers pay in commissions depends on their local market. Even so, many sellers are still covering the buyer’s agent fee — meaning buyers usually aren’t facing an extra upfront cost.
That can be good for buyers because they don’t have to pay anything while they search for a home. But it also leaves them with less leverage to push for a lower commission once they’re ready to buy. As a result, the new rules are looking a lot like the status quo.
“In practice, I haven’t seen a major shake-up in how commissions are handled — sellers are still usually the ones covering the buyer’s agent fee,” says Devin Kay, a Miami-based real estate agent at Douglas Elliman. “There are always exceptions, but by and large, the traditional model is still what’s playing out.”
In markets where demand is softening somewhat, sellers are offering to cover the commission as a way to make their property more attractive, he says: “In many cases, that leverage has worked in the buyer’s favor.”
“In Manhattan’s soft market, sellers are still footing the bill, typically 2.5% to 3%, because they know shifting the cost to buyers makes their listing dead on arrival,” says Mukul Lalchandani, a real estate broker based in Manhattan.
What buyers can do
While sellers might offer to cover buyer’s agent fees, it’s ultimately the buyer’s responsibility to understand how commissions will be handled.
Under the new rules, buyers are required to sign a buyer representation agreement that spells out the fee structure and services before touring homes. Once signed, that agreement can lock in the agent’s rate, although it leaves buyers less room to negotiate later — even if the cost is covered by the seller.
“Buyers should always meet with their agent before signing any buyer representation agreement to discuss exactly how the fee structure works,” says Patricia Cooper, a Connecticut-based real estate agent with Coldwell Banker Realty. “Ensure the commission is set upfront — this prevents surprises and gives everyone clarity on costs from the beginning.”
A good buyer’s agent earns their commission by negotiating the best price and terms, flagging issues before they derail a deal and connecting buyers with trusted professionals, such as inspectors, attorneys and lenders, says Kay.