HousingWireHousingWire
With the numbers showing a slight dip in commission percentages, one might assume the impact of the NAR settlement is minor. However, agents are discovering that the challenges are about more than just the amount of commission they are earning.
HousingWire surveyed a select group of real estate professionals and their responses tell a more nuanced story of evolving consumer expectations, internal strain among agents, and growing education burdens.
Clients are pushing back, or need reassurance
42.6% of agents have experienced commission-related pushback from clients since the settlement took effect.
This tension is even more visible in the open-ended responses.
- 13.9% of pushback comments reflected confusion or required clarification.
- 12.5% involved direct negotiation pressure.
- 12.5% cited misunderstandings related to the NAR settlement.
- 2.8% felt clients thought commissions were simply “too high.”
- A majority (58.3%) of comments were highly specific, illustrating just how unpredictable this new era is.
A common theme in the responses was that consumers are becoming more informed about commission structures, leading to more frequent negotiations and, in some cases, outright refusal to pay buy-side commissions.
One agent expressed frustration, stating, “Buyers are questioning why they need to pay a commission at all, and some think they can just go directly to the listing agent to save money.” Another mentioned, “Sellers are reluctant to offer buyer-side commissions, believing buyers should cover their own representation costs.”
Several respondents highlighted the challenge of educating clients about the value of their services. One noted, “Clients are confused, thinking that commissions are now illegal or that we should be working for free.” Another added, “Many assume that because commissions are negotiable, they should be dramatically lower.”
Additionally, some respondents reported losing deals due to commission disputes. One shared, “Had a deal fall apart because the buyer refused to pay, and the seller wouldn’t contribute.” Another stated, “I’ve had to cut my commission just to keep deals together.”
In summary, the primary areas of pushback revolve around:
- Buyers refusing or hesitating to pay commissions.
- Sellers resisting offering buy-side commissions.
- Increased difficulty in explaining and justifying commission rates.
- Deals being jeopardized due to commission disagreements.
Overall, these responses indicate a shifting landscape where agents must adapt to new consumer expectations and develop stronger value propositions to justify their fees.
Key positive takeaways
- Increased transparency has led to more open commission discussions.
- Some buyers and sellers acknowledge and respect the agent’s value.
- Agents who clearly communicate their worth are still able to secure fair compensation.
- The industry shift is seen as a way to improve professionalism and strengthen client relationships.
It’s no surprise that 99.4% of agents reported having to explain the rule changes to clients, indicating an industry-wide shift toward active, proactive education.
Agent collaboration is being tested
36% of agents reported a decrease in cooperation among peers since the rule changes, and just 8.7% saw an increase. The remaining 55% report no change, but qualitative responses suggest that uncertainty around roles, pay, and disclosures may be straining trust and teamwork.
The professionals behind the data
