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Your Commission Just Got Smaller—Here’s Why (And What To Do About It)

Updated: May 1

A confident real estate agent wearing a navy suit and pearl necklace stands in a modern, luxurious home. She is holding a tablet displaying real estate listings, smiling warmly. The home features an open-concept design with sleek furniture, a beige sectional sofa, a round glass coffee table, and a marble kitchen island with modern barstools. Large floor-to-ceiling windows let in natural light, offering a view of an outdoor pool and patio area, creating a bright and inviting atmosphere.
If you’re still building your real estate business around buyer-side deals, this is your wake-up call.

What was once a stable, high-yield revenue stream is now rapidly shrinking—and agents who fail to adapt risk being left behind.


In the past five years, buyer agent commissions have quietly, and now dramatically, declined across the U.S. The numbers don’t lie—and neither does the opportunity in front of you.

This is the moment to pivot. And the future? It belongs to listing-focused agents.



The Buy-Side Breakdown: 5 Years of Declining Commissions


For most of the late 2010s, buyer agent commissions hovered around 2.5–2.7%. Today, that number is slipping toward the low 2s—with high-pressure markets dipping under 2.0%.


Here’s how it’s unfolded:

📊 Year-by-Year Buyer Agent Commission Averages(Data from Redfin, RealTrends, and industry surveys)

  • 2019 – ~2.70% (estimated)

  • 2020 – ~2.69%

  • 2021 – ~2.63% (lowest on record at the time)

  • 2022 – ~2.60%

  • 2023 – ~2.65–2.66% (temporary rebound)

  • 2024 – Dropped to ~2.34% by Q4


At first glance, these may look like small percentage shifts. But in a commission-based business, even a 10–20 basis point change means thousands in lost income per transaction—and billions across the industry.



What Happened in 2024? The NAR Settlement Shift


The real inflection point came with the National Association of Realtors (NAR) Settlement, finalized in early 2024. Two major changes took effect:


  1. Sellers are no longer required to offer buyer-agent compensation in the MLS

  2. Buyer-broker agreements became mandatory starting August 17, 2024


This fundamentally changed how buyer agents get paid. Suddenly, buyers—already facing affordability challenges and rising rates—were asked to negotiate that fee themselves. Many didn’t understand it. Many pushed back. And as a result, average buyer-side commissions plummeted.


By year’s end, compensation had stabilized around 2.34%, but the shift was already baked in.


Regional Impact: Who’s Feeling It the Most?


While national averages tell one story, regional pressure tells another.


🔻 Markets Where Commissions Are Falling Fast

  • Anaheim, CA – ~2.11%

  • Nassau County, NY – ~1.95%

  • Providence, RI – ~2.05%


✅ Markets Holding Strong (for now)

  • Cincinnati, OH – ~2.95%

  • Austin, TX – ~2.99%

  • San Antonio, TX – ~2.91%


In other words: agents flocking to higher price-point markets in search of bigger paydays are also absorbing the steepest cuts in compensation.


Why Listing Agents Still Hold the Advantage


Here’s what hasn’t changed—and what likely never will: Listings = Leverage.


The agents who control the listings control the market. They attract the buyers. They write the rules. And in today’s post-settlement world, they enjoy:


  • 💼 Control – Set terms, timelines, and expectations

  • 📈 Leverage – Structure your value, not defend it

  • 🧱 Stability – Seller-side commissions remain more consistent

  • 🧠 Authority – You’re the expert—not just the facilitator


Meanwhile, buyer agents are navigating fee-conscious, deal-shy clients who are often skeptical about the value of the service.


If you're not building a listing-first business in 2025, you’re leaving your future in someone else’s hands.


...So, What Should You Do Now?


If your current model is still heavily buyer-side dependent, here’s how to make a profitable shift:

  1. Invest in listing-specific skills – Learn the language of confident sellers

  2. Master pricing and presentation frameworks – Win the listing and the trust

  3. Use strategic scripts and systems – Avoid one-off wins and build momentum

  4. Focus your lead generation on sellers – Quality > quantity


📌 Pro Tip: Agents who win in this new market are those who install repeatable, scalable listing systems that don’t rely on outdated commission structures.



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Tags: real estate commissions, buyer agent commission decline, NAR settlement 2024, real estate market trends, listing agent strategies, real estate coaching, how to get more listings, real estate scripts, listing presentation, Listing Beast Brendan Bartic, real estate agent tips, real estate

3 Comments

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Guest
Apr 08
Rated 5 out of 5 stars.

Great info! Thank you.

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Owen Brumback
Owen Brumback
Apr 08
Rated 5 out of 5 stars.

That is crazy...I wonder what they'll be next year and beyond - thanks!

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meggustafson
Apr 08
Rated 5 out of 5 stars.

WOW! This is so helpful, my mind is blown! Thank you for sharing.

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