Real Estate Commissions Steady at 5.70% Post-NAR Settlement, Cotality Survey Finds

Despite NAR settlement, US real estate commissions remain steady at 5.70%, Cotality survey shows, impacting investors and market dynamics.

Real Estate Abroad TeamUpdated 5 min read
Real Estate Commissions Steady at 5.70% Post-NAR Settlement, Cotality Survey Finds

Average Real Estate Commissions Hold Firm at 5.70%

Despite anticipations of a decline following the National Association of Realtors (NAR) settlement, real estate commissions in the United States have shown remarkable resilience. According to a recent survey conducted by Cotality and ResiClub, nearly two-thirds of real estate agents report that commissions have remained stable, averaging 5.70% in 2026. This rate is slightly above the national average of 5.44% as recorded mid-year by Clever Real Estate. These figures suggest that the predicted fee compression has not materialized, challenging the expectations set by the landmark settlement intended to reduce commission rates.

📌 Key Takeaways

  • Real estate commissions remain at 5.70% despite NAR settlement.
  • 66% of agents report no change in commission structures.
  • Regional variations show lower rates in competitive metro areas.
  • Settlement fails to reduce commission rates as expected.

Survey Reveals Persistent Commission Levels Among Agents

The survey results from Cotality and ResiClub indicate that 66% of real estate agents have not observed any significant changes in their commission structures. The settlement, which was expected to foster competition and drive down costs, does not seem to have delivered on its promise. According to the survey, the reasons for this 'stickiness' include the entrenched industry practices and the agents' ability to maintain value perceptions among clients. The limited impact of regulatory changes illustrates the complexity of altering longstanding industry norms.

66% of agents report no change in commission structures.

Regional Variations in Commission Rates

While the national average hovers around 5.70%, regional variations do exist. According to Real Estate News, commissions in metropolitan areas like New York and San Francisco have seen slight decreases due to higher competition and the presence of tech-driven real estate firms offering discounted rates. Conversely, in less competitive markets, traditional commission levels remain the norm. These regional discrepancies highlight the uneven impact of the settlement across different geographical areas, with more competitive markets experiencing greater pressure to adjust fees.

Implications for Investors and Homebuyers

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Photo by Rock Staar on Unsplash

For international investors and homebuyers, the persistence of high commission rates may affect overall transaction costs. As noted by NBC News, the unchanged commission rates mean that buyers and sellers should continue to factor these costs into their financial planning. This 'stickiness' in rates could potentially deter some investors from entering certain markets, particularly those who are sensitive to transaction costs.

Expert Opinions on Post-Settlement Commission Trends

Industry experts have weighed in on the aftermath of the NAR settlement. Maya Tarek, a senior analyst at RealEstateAbroad.com, suggests that the settlement has not yet fully played out. "We are likely to see gradual changes over time as market dynamics continue to evolve," she notes. Other analysts, however, remain skeptical about significant future shifts, citing the strong resistance from traditional brokerage models and the slow pace of regulatory impact.

Long-Term Prospects for Commission Structures

Looking ahead, the question remains whether commission structures will eventually adapt to the intended outcomes of the NAR settlement. The static nature of current rates suggests that significant change may require further regulatory intervention or substantial shifts in consumer behavior. For now, investors and real estate professionals should remain vigilant, adapting strategies to account for persistent commission costs.

Key Takeaways

The resilience of real estate commission rates despite the NAR settlement offers critical insights for market participants:

  • Expect continued stability in commission rates in the near term.
  • Regional market dynamics will continue to influence fee structures.
  • Investors should strategize with persistent commission costs in mind.
  • Long-term changes may require additional regulatory measures.

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