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The Aug. 17 deadline has come and gone, and on the surface, real estate professionals report it’s been mostly business as usual — even if there have been a few more headaches for everyone involved.
Listing clients are still overwhelmingly agreeing to cover the buyer’s agent commission. And few homebuyers are negotiating lower-than-usual commission rates with their buyer’s agent.
But under the surface, some agents and brokers were already reporting interactions with clients that — if they continue to play out — could place downward pressure on commissions in the months and years ahead.
- 70 percent of real estate agent respondents to the latest Inman Intel Index survey either said that commissions have stayed the same as a percentage of the purchase price since the Aug. 17 deadline, or that it’s too early to tell.
- But another 28 percent of agents say they’re already observing a downward trend in commissions as a percentage of the purchase price since the deadline, compared to fewer than 3 percent who said commissions had gone up.
What’s been behind this rising sense of angst over commissions? Intel sought to find out.
From Aug. 19-30, Intel asked 779 real estate agents, brokers and other professionals a series of detailed questions about their interactions with buyers and sellers, how their local MLS has handled the switch, and other topics related to the post-deadline environment.
Their responses suggested there has been little change so far. But a growing number of buyers and sellers are seriously inquiring about their options. And the agents who field these questions the most lately have seen their seller clients increasingly take a hardline stance.
Intel explores the effect this may have on the future of the…