In August, new real estate commission rules were implemented following a $418 million settlement between home sellers and the National Association of Realtors (NAR). These changes prevent listing agents from advertising buyer’s agent commissions upfront in NAR-affiliated multiple listing services (MLS), aiming to curb steering practices. Sellers are no longer automatically required to pay both their own agent and the buyer’s agent, leading to increased negotiation over commissions.
Six months after the new rules took effect, the impact on luxury home sales has become clearer. While overall buyer’s agent commissions remain steady at 2.37%, luxury market commissions have seen a decline, while commissions for lower-priced homes have increased slightly.
According to Redfin, the average buyer’s agent commission for homes sold at $1 million or more dropped to 2.17% in the fourth quarter, down from 2.22% in the third quarter and 2.33% a year earlier. Conversely, for homes priced under $500,000, commissions have risen slightly to 2.46% from 2.42% in the previous quarter.
Luxury home transactions are seeing lower commission rates as agents accept smaller percentages due to higher transaction values. Since a lower percentage on a high-value transaction still results in significant earnings, agents in the luxury market are more willing to negotiate down their fees. Additionally, high-end sellers often expect to cover around 2% in buyer’s agent commission as part of their pricing strategy.
Despite concerns about plummeting commissions, the luxury market remains stable, with sellers continuing to cover buyer’s agent fees in most cases. However, increased negotiation over commissions suggests further shifts may be ahead.
George Cress of Real Broker represents home buyers and sellers throughout Connecticut, with a focus on Fairfield County. He combines technology, local market knowledge, and modern real estate marketing to help buyers keep more of their money and sellers generate greater interest in their homes.
For buyers, George offers flat-fee buyer representation and buyer commission rebates, providing meaningful savings alongside full-service guidance, negotiation, and support through closing. For sellers, he uses property storytelling, video, targeted digital advertising, and one of Connecticut’s largest social media audiences focused on local real estate to reach beyond traditional MLS exposure and attract more qualified interest. Through Co-List with Cress, sellers can add these marketing capabilities while continuing to work with their preferred listing agent.
Explore active Connecticut homes for sale, including listings in Fairfield, Westport, Greenwich, and other Fairfield County communities. To discuss buying or selling a home in Connecticut, contact George Cress.
George Cress
(212) 203-5251
george@cress.co
License #RES.0832278
Fairfield County, CT
Real Broker CT, LLC
License #REB.0751297
100 Pearl Street, 14th Floor
Hartford, CT 06103
