In the immediate aftermath of the NAR settlement, some industry professionals feared that Boston condo broker commission rates could plummet. Data from two recent studies, however, suggests that commissions are now roughly the same as they were before new industry practices took effect.

Real estate commissions back to 2023 levels

Following the August rule changes, commissions for both buyer and seller agents fell, but they have since rebounded, according to an AccountTECH study that analyzed more than 224,000 transactions from 1,290 real estate offices.

Months after the new rules kicked in — buyer agent commissions averaged 2.55%, AccountTECH found. That’s identical to the average commission rate a year ago.

Listing agent commissions averaged 2.73% in mid-January, up slightly from 2.72% a year ago and an improvement over the post-settlement low of 2.69% in November.

“This consistent upward trend over the past months suggests a modest recovery or stabilization in seller commissions, countering initial fears of significant rate declines,” the report stated.

Market forces, such as inventory levels and mortgage rates, are likely to have the biggest effect on commissions going forward, the report concluded.

Some declines, but little change for mid-tier listings

A Redfin report released this week, which used a different data set, found that commissions had dropped year-over-year but were relatively stable in the second half of 2024. When looking at commissions based on a home’s price point, however, the data revealed some interesting trends.

Overall buyer agent commissions averaged 2.37% during the fourth quarter, Redfin found — essentially unchanged from the third quarter, but down from a year ago, when the average rate was 2.45%.

Commissions on homes under $500,000, however, rose in the fourth quarter to 2.46%, though they were still down from 2.5% a year ago.

But for homes in the $1 million-plus range, buyer agents earned 2.17%, down from 2.22% in the third quarter and 2.33% a year ago. While buy-side commission percentages are typically lower on high-end homes, the downward trend appears to support predictions from Redfin economists, who said in December that commissions for luxury homes were expected to fall in 2025.

Commission averages were derived from “a sample of thousands of transactions per quarter,” the report noted, including buy-side commissions on sales of Redfin listings and deals referred by Redfin. The discount brokerage did not include its own buy-side transactions given the firm’s lower commission rates.

My thoughts on Boston real estate commissions

I’m not seeing any significant drop in Boston condo for sale commissions where agents have the buyer fee posted. However, what I am seeing, is that more and more brokers and agents are not providing a buyer agent commission, by leaving that MLS field blank, or in some cases indicating a 0 (zero) commision offered.

Peace be with you