The
new
rules
mandated
by
the

National
Association
of
Realtors’
(NAR)

antitrust
settlement
are
designed
to
encourage
more
negotiations
for
buyer
agent
commissions.
Almost
a
month
after
the
rules
went
into
effect,
that
appears
to
be
happening.

That’s
according
to


Redfin,
which
interviewed
dozens
of
its
agents
about
what
they’re
seeing
on
the
ground
in
regard
to
buyer
commission
conversations.
The
interviews
revealed
that
buyers
in
some
markets
are
more
open
to
taking
on
some
of
the
cost
of
compensating
their
agents.

“Like
with
the
amount
of
earnest
money
deposit
or
including
an
inspection
contingency,
the
amount
the
buyer
is
asking
the
seller
to
pay
her
agent
is
a
term
that
impacts
the
strength
of
the
offer,”
Redfin
chief
economist
Daryl
Fairweather
said
in
a
statement.
“That
will
likely
drive
fees
down
over
time.”

While
Redfin
agents
are
seeing
more
negotiations,
it’s
more
common
in
some
markets
than
others.
In
markets
like

Austin
that
have
stalled
due
to
less
buyer
demand,
sellers
are
more
likely
to
take
on
the
cost
of
paying
a
buyer’s
agent
to
make
their
home
more
attractive.

In
markets
with
less
inventory
and
more
demand
from
buyers,
sellers
are
taking
advantage
of
this
demand
in
negotiations
on
commissions.
In
general,
however,
Redfin
agents
still
see
sellers
willing
to
pay
for
buyer
commissions.

“We’ve
found
a
tale
of
two
markets,”
Fairweather
said. 

Transparency
on
commissions
with
home
buyers
and
sellers
was
another
goal
of
the
NAR
settlement
rules,
and
Redfin
said
that’s
happening
too.
Instead
of
negotiating
on
the

MLS,
agents
are
engaging
through
phone
calls
and
text
messages.

Redfin
previously
reported
that

buyer
agent
commission
rates
have
started
to
fall.
But
the
new
average
figure
of
2.55%,
just
before
the
new
rules
took
effect
Aug.
17,
is
down
only
slightly
from
2.62%
in
January.
But
different
brokerages
are
experiencing
different
things. 

On
its
second-quarter
earnings
call,


Compass
reported
that
it
has
seen
virtually
no
change
in
buyer
agent
commissions,
stating
that
fears
“have
simply
not
materialized.”

The
$418
million
settlement
agreed
to
by
NAR
to
close
a
web
of

antitrust
lawsuits
related
to
agent
compensation
mandates
that
listing
agents
can
no
longer
make
unilateral
offers
of
compensation
to
buyer
agents
on
the
MLS.
It
also
requires
home
shoppers
to
sign
an
agreement
on
compensation
with
their
agent
before
they
can
tour
a
home.
But
this
was
already
a
requirement
in
some
states.

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