Agent Anxiety Decreases as Negotiations Progress: Intel Shows

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It has been nearly six months since new real estate practice changes took hold in the wake of landmark antitrust lawsuit settlements that rocked the industry.

Cooperative compensation, whereby homesellers agree to pay a commission to their seller’s agent, which is then shared with the buyer’s agent, is now a thing of the past. Although commissions were always negotiable, transparency over agent commissions and negotiations surrounding them have been put at the front and center of the transaction.

After operating under the largely assumed rule for so long, many agents felt anxiety about how commissions might be negatively impacted in the future by the practice changes. Would sellers refuse to pay a buyer’s agent commission? Would buyers be willing to chip in to pay their agents? Would agent commissions tank altogether? These are some of the questions that Inman Intel has been tracking.

Recent survey results of 652 Inman readers polled in January show that although many agents report some kind of decline in commission rates since the NAR settlement rules went into effect, they are also approaching conversations surrounding agent compensation in a manner that suggests less anxiety around commissions overall. That also may mean that agents are finding more solid footing to perform with more confidence in their business on a day-to-day basis.

Buyers keep trying for lower commissions

The majority of agents polled by Intel in January say that their prospective buyer clients have not made an attempt to negotiate lower commissions in recent months. That said, a sustained number of buyers continue to try their hand at negotiating for a price lower than what has been typical in their market.

• 66 percent of agents polled said that no buyers had tried to bargain for a lower commission rate in the last 3 months.
• 34 percent of survey respondents said that at least some of their buyers tried to negotiate a lower rate.

A growing number of agents are seeing a small, but significant, amount of buyers angling to pay less for commissions — somewhere between 10 and 50 percent of buyers.

• During January, 9 percent of agents fell into this category where some, but not an overwhelming amount, of buyers tried to negotiate for less.
• By contrast, only 7 percent of agents reported the same amount of negotiation in December. Back in August, that figure was only 4 percent.

These trends also track a recent study commissioned by Redfin, which found that more than half of agents are seeing buyers and sellers negotiate over commissions with more frequency in the wake of the NAR settlement. The study also found that buyer’s agents earned an average of 2.37 percent during Q4 2024, down from 2.45 percent the year before.

Sellers curious, but open-minded on paying buyer commissions

A stable share of homesellers continue to show curiosity over whether or not they are required to cover the buyer’s agent’s commission, as they adapt to new industry norms.

• Three-quarters of agents surveyed in January’s Intel Index had at least one client ask in the past three months if they had to cover the buyer’s agent’s commission.
• 29 percent of agent respondents said that more than half of their sellers asked if it was obligatory.
• 27 percent of agents said that less than 10 percent of their seller clients wondered if they had to pay the buyer’s agent’s fee.

When it came down to whether or not sellers were actually willing to pay the buyer’s agent’s fee, however, only about one-third of agent respondents faced sellers who refused to cover the buyer’s agent’s commission. Fortunately, most agents who encountered such “hard-line” sellers said that they made up less than 10 percent of their seller clients.

Despite downward commission pressure, agents seem less anxious in negotiations

As buyers and sellers continue to show curiosity and a growing awareness about the downward negotiability of buyer’s agent commissions, agents seem to be gradually adapting to this new landscape with a less anxious mindset reflected in how they approach deals as a buyer’s agent.

Most agents surveyed by Intel in January still reach out to the listing agent on a property to confirm the buy-side commission before their client submits an offer, whenever possible. However, more and more agents are taking an approach that involves a small leap of faith.

• 53 percent of agents have been reaching out to the listing agent to ask about the buyer’s agent commission before their buyer submits an offer.
• Without asking the seller’s agent in advance, 34 percent of agents have been encouraging their clients to submit an offer that requires the seller to cover the buyer’s agent’s full commission, then eventually learn how the seller feels about it as negotiations play out.

The number of agents who fall into this latter category of waiting to see how negotiations play out naturally has been steadily growing over the last six months as the number of agents who check in with the listing agent first modestly declined.

• Back in August, 63 percent of buyer agent respondents said they asked the listing agent about the buy-side commission before their client put down an offer.
• That same month, just 21 percent of agents said they typically encouraged clients to submit an offer requiring the seller to cover the buyer’s agent’s commission without knowing their stance on the matter in advance.

It seems that homebuyers, homesellers and agents themselves are all continuing to find their way to a new normal. And any downward pressure on commissions may not be due to the settlement alone — consumers are feeling stress on their wallets as home prices continue to climb across the country, and may continue to feel that stress as the effects of recent tariffs on Canada and Mexico start to hit closer to home.

Methodology notes: This month’s Inman Intel Index survey was conducted Jan. 21-Feb. 4, 2025, and received 652 responses. The entire Inman reader community was invited to participate, and a rotating, randomized selection of community members was prompted to participate by email. Users responded to a series of questions related to their self-identified corner of the real estate industry — including real estate agents, brokerage leaders, lenders and proptech entrepreneurs. Results reflect the opinions of the engaged Inman community, which may not always match those of the broader real estate industry. This survey is conducted monthly.

Email Lillian Dickerson