Fall 2022 Commission trends?

nosuchreality

Well-known member
With the change in market conditions have there been any changes in listing commission structure?

Is 2.5%/2.5% still typical for listings?
 
In Irvine, it is still mostly 2% but I am seeing more 2.5% buyer agent commissions in other listings in Orange County.
 
Sold my home 3 months ago & paid 2% each for listing and buying agents. They both were very happy because home was sold north of $1mil. I guess it all depends on how much the house is worth. If its value is low, 2.5% for buying agent is more enticing.
 
Sold my home 3 months ago & paid 2% each for listing and buying agents. They both were very happy because home was sold north of $1mil. I guess it all depends on how much the house is worth. If its value is low, 2.5% for buying agent is more enticing.

Good timing!
 
This is interesting... back in the day it used to be 3/3... now it's 2/2.

Is this the Redfin effect?
3/3? That's pretty rare. I've seen mainly 2/2, 2.5/2.5 or 3/2 or 2/3, depending on market condition. For the past couple of years, it was mainly 2/2, sometimes even 1.5% for buyer's agent since it was seller's market.
 
Selling agents have been dropping to 1.5% to get more business as inventory has dropped. 2% selling agents will often include staging as well. There are also 1% selling agents out there who say they offer the same services like a standard 2% agent.
 
When I sold my Eastvale home, my agent originally did 2/2, but she later changed to 1.5% for herself and 2.5% for buyer's agent to incentivize the buyer's agent.
 
With the ease of access to available homes through Redfin and Zillow does incentivizing the buyers agent really work?? I’m assuming most buyers have visibility to all the homes on the market and new homes that come online. I can’t imagine an agent being able to persuade a buyer to go buy a particular house because the buyers agent fee is .5% higher.
 
With the ease of access to available homes through Redfin and Zillow does incentivizing the buyers agent really work?? I’m assuming most buyers have visibility to all the homes on the market and new homes that come online. I can’t imagine an agent being able to persuade a buyer to go buy a particular house because the buyers agent fee is .5% higher.

In times of extremely low inventory, I would say it's a waste of .5%. How can an agent steer a client to another property that doesn't exist.
 
What's the saying? Penny wise...

On a more serious note, in Irvine given the relatively high property values, it's usually 2/2 or 2.5/2.5 if it's a lower-end home.
 
Remember during 2021 how some listing agents were offering .5 commission since demand was high? Those times are long gone. I've heard many, many realtors over the years openly say in a crowded room "Oh, I won't show a home if the commission is X". It's easy - unfortunately - to highlight the features of a higher commission listing and denigrate the same features of a low commission home. The realtors who use these tactics are low producers for the most part and are slowly fading away due to the aforementioned "Redfin and Zillow effect". Good riddance I say.
 
Back
Top