Source: World Property Journal —
National property broker Redfin is reporting the typical commission rate paid to brokerages representing homebuyers in the U.S. has fallen to its lowest point in at least four years.
Redfin found the typical U.S. buyer’s agent commission was 2.63% of the home-sale price during the three months ending Nov. 30, 2021– down from 2.69% a year earlier and the lowest rate in Redfin’s records, which date back to 2017.
In a typical home sale transaction, the seller covers the cost of the fees of both their agent and the buyer’s agent. Redfin’s analysis focuses on the commission rate offered to the brokerage representing the buyer. Data on the typical commission rate paid to brokerages representing sellers is not available.
Fierce Competition May Be Contributing to the Falling Commission Rate
Today’s competitive housing market may be accelerating the decline in the buy-side commission rate, Redfin agents say. Sellers and their agents understand they’ll likely be able to find a buyer regardless of the commission they offer to the buyer’s agent.
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