Twelve months after the National Association of Realtors settlement reshaped how real estate commissions are negotiated, buyer agent compensation has fallen modestly while remaining largely intact, according to data released Friday by Redfin and HomeLight. The combined data covers roughly 380,000 transactions across major metropolitan markets between May 2025 and April 2026.
The average buyer agent commission landed at 2.37 percent of sale price in the first quarter of 2026, down from 2.55 percent a year earlier and 2.65 percent before the settlement took effect. The reduction is real but smaller than industry critics predicted at the time of the settlement.
Market-by-Market Variation
The decline has been uneven across regions. Sun Belt markets, including Phoenix, Austin, and Tampa, showed the largest drops, with average buyer commissions falling to between 2.10 and 2.25 percent. Northeast markets, including Boston and New York, saw smaller declines, with buyer commissions still averaging above 2.50 percent in many ZIP codes.
"The settlement created the framework for negotiation, but consumer behavior changed slowly," said Daryl Fairweather, chief economist at Redfin, in comments accompanying the report. "Most buyers still expect agent representation and most sellers still find offering compensation strategically useful in attracting offers."
New Compensation Models Emerge
Several alternative compensation structures have gained traction. Flat-fee buyer agency, where buyers pay a fixed amount typically between $4,000 and $9,000 regardless of home price, accounted for roughly 11 percent of transactions in the most recent quarter, up from less than 3 percent before the settlement.
Hourly billing remains rare, accounting for under 2 percent of transactions, though the structure has gained adoption among investors and second-home buyers. Hybrid models, combining a reduced percentage with milestone bonuses, appeared in roughly 8 percent of transactions tracked by HomeLight.
Seller Side Largely Unchanged
Listing agent commissions have shown little change, averaging 2.61 percent in the first quarter of 2026 compared with 2.65 percent a year earlier. The settlement primarily addressed the buyer side of the transaction, where the prior practice of sellers compensating buyer agents through the listing agreement raised antitrust concerns.
Total commission costs, combining both sides, fell from 5.20 percent in the spring of 2024 to 4.98 percent in the first quarter of 2026. On a $450,000 home, the typical national price point, the change represents a savings of roughly $990 per transaction.
Buyer Agreement Adoption
One major operational shift has been the widespread adoption of written buyer-broker agreements before home tours. Roughly 84 percent of buyers signed written agreements before viewing properties in the first quarter of 2026, up from minimal compliance a year earlier when the practice was first required.
The agreements typically specify the buyer agent's compensation, the duration of the agreement, and the geographic scope. Industry trainers report that the conversation about compensation now happens earlier in the buyer-agent relationship, often during the first phone call rather than at the offer stage.
Effects on First-Time Buyers
The settlement's effects on first-time buyers have drawn particular scrutiny. Critics warned that buyers without cash reserves to pay agents directly would either forgo representation or be priced out of markets. Data from HomeLight suggests roughly 7 percent of first-time buyers in the first quarter of 2026 went unrepresented, up from 4 percent a year earlier, though the absolute numbers remain small.
The Federal Housing Administration in October 2025 clarified that buyer agent fees can be financed into FHA loans under specific conditions, partially addressing concerns about cash-strapped buyers. VA loan rules were similarly clarified, allowing veteran buyers to finance agent compensation in most cases.
Industry Consolidation Continues
The number of active real estate agents has fallen roughly 12 percent since the settlement, according to NAR membership data, with marginal practitioners exiting the field. The remaining agents have absorbed transaction volume from departures, and average per-agent transaction counts have risen.
"The settlement accelerated a trend that was already underway," said Lawrence Yun, NAR's chief economist, in a statement. "Part-time and low-volume agents found the new compensation environment more difficult, while experienced full-time agents have generally maintained or grown their books of business."
What Happens Next
Several state-level settlements with brokerages and MLSs are still working through courts, and additional settlement provisions are scheduled to take effect in 2027. The Department of Justice continues to monitor industry compliance, and the agency has not ruled out further antitrust action if compensation practices remain effectively unchanged.