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Following the Aug. 17 deadline, real estate professionals have reported that business has largely continued as usual, despite some additional challenges. Listing clients are still mostly agreeing to cover the buyer’s agent commission, and few homebuyers are negotiating lower commission rates with their agents.
However, some agents and brokers are seeing potential trends that could lead to downward pressure on commissions in the future.
- 70 percent of real estate agents surveyed by Inman Intel reported that commissions have either remained the same or it’s too early to tell if they have changed since the deadline.
- Meanwhile, 28 percent of agents have observed a downward trend in commissions, compared to less than 3 percent who have seen an increase.
To understand the reasons behind this concern about commissions, Intel conducted a detailed survey of 779 real estate professionals. Their responses indicated that while there have been minimal changes so far, more buyers and sellers are exploring their options, leading to potential shifts in agent-client relationships.
Intel delves into the implications this may have for the industry moving forward.
Anticipating Changes
When a significant portion of respondents report seeing a decline in commissions, it raises questions about what this means for the industry. Some of these observations may be influenced by prior expectations, as many agents anticipated a drop in commissions even before the deadline.
Intel’s survey aimed to uncover how agent-client interactions, buyer contracts, and listing strategies have evolved in recent weeks.
Adjusting to New Conditions
Following the removal of the compensation field from the MLS, Intel asked agents if their MLS now includes a seller-concession field. The majority of agents reported that this feature is not available.
- Only 28 percent of agents said their MLS offers a field for listing clients to indicate their willingness to cover the buyer-side commission.
- Of those agents, less than half noted that this field is frequently utilized, accounting for just 12 percent of all agent respondents.
To determine the seller’s position on the buyer-side commission, buyer’s agents have been resorting to additional communication methods, primarily through direct contact with the listing agent.
- 63 percent of agents have been reaching out to the listing agent to confirm the seller’s stance on the commission.
- 21 percent of agents have not contacted the listing agent beforehand but have guided their clients to include commission details in their offer.
- Only 5 percent rely primarily on the MLS for this information.
Despite these changes, agents are still actively confirming commission details, albeit through different means than before.
This is resulting in increased communication between agents through calls, texts, and emails that may not have been necessary otherwise. The monthly survey is being conducted. For inquiries, please contact Daniel Houston via email.