Agents need to prepare for potential fallout from the NAR settlement in 2025, such as smaller buyer’s agent commissions.
Ever since the NAR settlement took effect in August 2024, the real estate industry has been holding its breath. People had a wide range of opinions on what would happen to the industry, from some people claiming nothing would change while others predicted the end of agents working primarily with buyers.
So far, the optimists have been mostly vindicated. While some things have certainly changed, most buyer’s agents have survived the shift. However, will this last? We’re still in uncharted territory, and many agents remain nervous about the future of their careers. That’s why today, I’m sharing some of my thoughts on what might happen to real estate commissions in 2025 and beyond:
1. The market slowdown has delayed significant shifts. When the NAR settlement first took effect, many people thought buyer agent commissions would be greatly reduced or eliminated entirely. This hasn’t happened, but it could just be due to the market slowdown. Right now, many markets have low demand, causing sellers to offer concessions to homebuyers. In other words, if the market picks up, sellers could stop offering concessions, like buyer’s agents’ commissions.
2. The market might speed up in 2025. While 2025 isn’t expected to be a boom market like we saw during the pandemic, it should improve slightly for sellers. When the market finally turns around and starts to strongly favor sellers again, commissions could be one of the first things they stop offering buyers. I don’t have a crystal ball, but I wouldn’t be surprised if buyer’s agents’ commissions became negatively correlated with how much leverage sellers have.
3. Make what you can now while preparing for the future. Despite whatever changes might occur when the market picks back up, one thing is certain: Buyer’s agents can still make a lot of money right now. I recommend that you work hard to make as much as possible in this market while keeping one eye on the future. This could mean transitioning to work with more sellers, looking for new training, building your referral network, or something else.
No one knows what the future holds for the real estate market except this: Things will change. Our team is always looking ahead to what the market might hold so we can be industry leaders. If you want additional training on how you can adapt to the future, please call or email us. I’d love to hear from you.
