What Research Shows About Post-Settlement Commission Levels

One of the most confident predictions in the media coverage of the NAR settlement was that buyer agent commissions would fall sharply once they had to be negotiated explicitly rather than automatically offered through the MLS. A year after implementation, the data suggests a more muted outcome. Research tracking closed transactions in markets that implemented the settlement changes found no meaningful change in average buyer agent commission amounts in the first year following August 2024. The mechanism changed (negotiated in contract rather than advertised on MLS), but the economics that produced typical commission levels — agent time, transaction complexity, seller incentives to attract buyers — did not change proportionally. The economic gravity behind commission levels was never primarily the NAR MLS rule. It was the intersection of seller incentives to attract financed buyers, agent time and expertise, and market convention. None of those changed on August 17, 2024.

What Is Typical in 2025-2026

Buyer agent commission rates in 2025-2026 typically range from 2–3% of the purchase price, consistent with pre-settlement levels: • On a $300,000 home: $6,000–9,000 • On a $400,000 home: $8,000–12,000 • On a $600,000 home: $12,000–18,000 • On a $1,000,000 home: $20,000–30,000 Variation exists by market, price point, and agent. Some agents in competitive urban markets accept 1.5–2% in high-volume environments; some specialized agents in specific niches maintain 3%+ rates for high-touch service. Flat-fee buyer agent models ($2,000–5,000 for limited services) are available in some markets. The key difference from pre-settlement: these rates are now explicitly discussed and specified in the buyer representation agreement before any home tours. The negotiation is visible where it was previously opaque.

How to Think About Commission as a Buyer

The question is not whether buyer agent commission is a line item you might see or pay — it is whether the representation produces value that equals or exceeds its cost. Frame it this way: if a skilled buyer's agent identifies one material issue in the inspection and negotiates a $12,000 seller credit, the value of their 2.5% commission on a $400,000 purchase ($10,000) is exceeded by a single negotiation. If they identify a neighborhood pricing trend that allows you to offer $8,000 below asking price and have it accepted, that's additional value. If they structure contingencies that protect your $16,000 earnest money through a challenging inspection, the value is clear. The question every buyer should ask their agent: "Show me a recent transaction where your representation produced measurable value for the buyer." A strong agent can answer this question specifically and confidently.

“My view on commission rates post-settlement: the conversation around compensation has gotten healthier. Buyers who used to sign documents at closing that revealed their agent received 2.8% on a $650,000 home — $18,200 — without having specifically discussed or agreed to it, are now having that conversation before the first tour. That transparency is genuinely good. The rates themselves have not changed much, and I do not believe they will change dramatically for skilled agents who provide real value. What is changing is the accountability that comes with having that number in writing before the relationship begins.”

— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®

• NAR Settlement Explained (Hub)
• Do Buyers Have to Pay Their Own Agent?
• What Is a Buyer Rep Agreement?
• How to Negotiate Agent Commission
• Impact on Sellers
• Buy Without a Buyer's Agent?

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