Early Assessment Shows Broker Commissions Declining

A comparison of real estate broker commissions shows year-over-year decreases for both buyer agents and seller agents.

In a recent blog, internationally known economist Elliot F. Eisenberg, Ph.D., noted it’s “still very early and the housing market is profoundly weak,” but said evidence shows commissions are declining since the National Association of REALTORS® landmark legal settlement on real estate commissions.

Data from mid-August through early October show buyer agents’ average commissions fell from 2.65% to 2.28%. Seller agent commissions also shrunk, dropping to 2.69% from the year-ago figure of 2.98%. “These declines follow economic theory,” Eisenberg remarked.

Eisenberg, also known as The Bow Tie Economist, Eisenberg is chief economist for GraphsandLaughs, LLC. In addition to leading a Miami-based economic consultancy, he is a syndicated economist and popular keynote speaker.