Key Highlight
- Before, Redfin first brokerage to publish commissions of own agents on its website
- Now, with upcoming settlement between Department of Justice and National Association of Realtors, Redfin to publish buyer’s agent commissions on over 700,000 home listings
Redfin First to Publish Buyer’s Agent Commissions on All Listings Sites
Redfin was the first national brokerage to publish its own buyer’s agent commission information on its own website. Now, in anticipation of an upcoming settlement between the National Association of REALTORS®(NAR) and the US Department of Justice (DOJ),Redfin is to publish buyer’s agent commission information for over 700,000 home listings in areas of the country where this information is available.
(Prior to this settlement agreement with the DOJ and NAR, Redfin had been restricted from publishing commission information on other brokerages’ listings. Currently Redfin has its buyer’s agent commission information on 65 MLS.)
Redfin Supporting Access toConsumer Information
According to Redfin CEO Glenn Kelman, “Homebuyers will finally see how much money their agent stands to earn on any home for sale, letting them evaluate whether they’re getting good value for their money. On the other side of the deal, people listing their home will find out what other sellers are paying buyers’ agents, without having to take their agent’s word for it. This information could usher in a new era of price competition that saves consumers billions of dollars in fees.”
Upcoming NAR/DOJ Settlement to Make Fees Public
This NAR/DOJ agreement is designed to make buyer’s agent commission fees public and to forbid real estate agents from misrepresenting their services.
Buyer Agent Commissions Decreased in Seattle After Commissions Became Public
Thus far, Seattle has been the only market where its local MLS allowed brokerage sites to publish buyer’s agent commissions prior to this upcoming DOJ/NAR settlement. When first published in 2019, buyer’s agent commission dropped from 2.8% to 2.7% in 2020. Nationally, average buyer’s agent commissions have remained flat at 2.7% between 2019 and 2020.
Redfin Currently Only Brokerage Posting Buyer’s Fees
No other brokerage or website, such as Zillow, realtor.com, or Trulia, has begun posting buyer’s agent commission fees in the “property details” of listing sites as of this writing. We’ll see if other brokerages follow Redfin’s lead.
Thanks to Redfin and HousingWire.
