In August, new real estate commission rules were implemented following a $418 million settlement between home sellers and the National Association of Realtors (NAR). These changes prevent listing agents from advertising buyer’s agent commissions upfront in NAR-affiliated multiple listing services (MLS), aiming to curb steering practices. Sellers are no longer automatically required to pay both their own agent and the buyer’s agent, leading to increased negotiation over commissions.
Six months after the new rules took effect, the impact on luxury home sales has become clearer. While overall buyer’s agent commissions remain steady at 2.37%, luxury market commissions have seen a decline, while commissions for lower-priced homes have increased slightly.
According to Redfin, the average buyer’s agent commission for homes sold at $1 million or more dropped to 2.17% in the fourth quarter, down from 2.22% in the third quarter and 2.33% a year earlier. Conversely, for homes priced under $500,000, commissions have risen slightly to 2.46% from 2.42% in the previous quarter.
Luxury home transactions are seeing lower commission rates as agents accept smaller percentages due to higher transaction values. Since a lower percentage on a high-value transaction still results in significant earnings, agents in the luxury market are more willing to negotiate down their fees. Additionally, high-end sellers often expect to cover around 2% in buyer’s agent commission as part of their pricing strategy.
Despite concerns about plummeting commissions, the luxury market remains stable, with sellers continuing to cover buyer’s agent fees in most cases. However, increased negotiation over commissions suggests further shifts may be ahead.
Cress is an innovative real estate advisory firm representing buyers and sellers of high-end properties throughout Fairfield County, CT and beyond. On the sell side, Cress delivers marketing-driven support designed to expand visibility and maximize outcomes. Through its co-listing model, Cress partners alongside listing agents to provide digital-first distribution, high-quality content creation, and proactive demand generation strategies that extend well beyond traditional MLS exposure.
On the buy side, Cress offers flat-fee representation and commission rebate programs that bring efficiency and transparency to luxury transactions while maintaining a high standard of service. Known for strategic insight, modern marketing execution, and deep local knowledge, Cress provides a smarter, more aligned approach to buying and selling real estate.
For more information, visit www.callcress.com.
Doug Cress
(212) 203-5251
doug@cress.co
License #RES.0832278
Fairfield County, CT
Enterprise Realty Inc.
License #REB.0751297
45 Huntington Plaza
Shelton, CT 06484
