The cost of hiring a buyer’s agent in the U.S. housing market is inching upward again marking the third consecutive quarter of increases as shifting market dynamics give buyers more bargaining power over sellers.
According to new data from Redfin, the average buyer’s agent commission for homes sold in the second quarter of 2025 reached 2.43%, up slightly from 2.38% a year earlier. While the increase may seem modest, it continues a steady rebound from the post–National Association of Realtors (NAR) settlement slump in late 2024.
From Settlement Shock to Slow Rebound
When NAR announced its landmark settlement in early 2024 part of a class action lawsuit brought by home sellers commissions fell almost immediately. The new rules allowed sellers to openly negotiate lower rates, pushing the national average down to 2.36% in Q3 2024, the lowest point in recent history.
But over the past year, commissions have been inching back toward pre-settlement levels. In many cases, buyers now wield more influence in negotiations, enabling them to secure higher pay for their agents especially in slower markets where sellers are eager to close deals.
As part of the settlement, NAR rewrote its commission policies:
- Buyers and their agents must agree in writing on compensation before viewing homes.
- Offers of compensation can no longer appear on Multiple Listing Services (MLS).
- Sellers can still offer to cover buyer’s agent fees but those offers must now be made off-MLS.
Commissions Jump Most for Homes Under $500K
Redfin’s data shows that commissions ticked higher across all price tiers in Q2:
- Under $500,000: 2.52% (highest since Q3 2023)
- $500,000 to $999,999: 2.34%
- $1 million or more: 2.21%
At the lower end of the market, agents say there’s little room for negotiation. “Entry-level buyers are already stretched just to afford the home, so commissions rarely get cut,” said Austin-based Redfin agent Andrew Vallejo. “Builders are still offering 3% or more, so we have to match that to stay competitive.”
A Market Flooded with Sellers
In June, there were over 500,000 more home listings than active buyers, the widest gap since Redfin began tracking the metric in 2013. This supply-heavy environment has given buyers significant leverage.
“In Austin’s slower market, buyers can walk away if the seller refuses to cover the commission and they’ll probably find another home that does,” Vallejo explained.
But trends vary by region. In Kansas City, Redfin Premier agent Jo Chavez says most sellers still agree to the rate buyers want. “Some sellers ask about offering no commission or cutting it, but very few actually do. The typical outcome is still close to 3%,” she said.
Meanwhile, in Minneapolis, agent Emily Olson has seen more flexibility from buyers. “Most expect a 2.7% commission, but lately I’ve been able to negotiate down to 2.5% in several deals,” she said.
The Bigger Picture
The commission rebound reflects a delicate balance in today’s housing market. While the NAR settlement gave sellers more room to negotiate, a cooling market and excess inventory have shifted negotiating power back toward buyers at least for now.
Whether commissions continue to rise will depend on how the market evolves in the coming months. If mortgage rates drop and competition among buyers heats up, sellers may regain the upper hand. But for now, buyer’s agents are quietly clawing their way back toward pre-2024 pay levels. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
