Yesterday, RISMedia unveiled its groundbreaking 2024 Contract & Commission Study, providing the first comprehensive analysis of how real estate commissions have changed in the wake of recent policy mandates—including who was most affected, how companies are adapting and which regions were seemingly best prepared for the new requirements.
Maybe most importantly, though, the RISMedia Premier-exclusive study confirms that commissions did in fact drop after the Aug. 17 deadline for the National Association of REALTORS’® (NAR) settlement agreement, which removed compensation offers from the MLS and made buyer agreements mandatory (among other things).
After rampant speculation and some unconfirmed early reports, the news that commissions are falling is concerning—but a closer look at the data shows a much more complex picture. Surveying over 1,300 real estate professionals nationwide, RISMedia’s analysis looks at everything from agent experience to brokerage model to in-office work, finding that your commission (and how much pressure it is under) depends on the choices you make and the type of agent you choose to be.
It is that analysis—which found that some agents are already making choices like shifting their business to focus on listings or moving away from “cooperative compensation”—that can allow you to best make the urgent and important decisions that lead to long-term success. While it is still unclear what the trajectory is for real estate compensation in the year ahead, what is clear is that change has already arrived, and real estate professionals are already adapting based on new information.
These innovative brokerages and adaptable agents, who are already absorbing the data and adjusting, will set the pace regardless of what the future holds. This study offers a roadmap for success, helping real estate professionals understand where and how compensation is changing—and how to remain competitive in this challenging environment.
Key insights from the study include:
The Fall of Commissions: What the data reveals about buyer agent and listing agent compensation, and how each side is faring post-settlement.
Regional Trends: The regions seeing the biggest changes in commission rates, especially those with mandatory buyer agreements before the settlement.
Adapting to Change: How (or if) companies are shifting their commission structures, fees and profit-sharing models in response to tightening margins.
Splits and Margins: What’s happening to commission splits as agents and brokers adjust to these seismic shifts.
Agent Behaviors: How agents’ priorities are changing, from referral fees and compensation caps to in-office work and new innovations.
The study, which covers the last year of data—both before and after the settlement—delivers critical analysis for real estate professionals seeking to understand how policy changes are reshaping the industry.
Read the 2024 Contract & Commission Study today!
