What Will Happen To Real Estate Commissions in 2025?

By Kandie Frederick

Growing up on the central coast, Kandie is a third generation family in the North County and a second generation family in real estate. Joining Country Real Estate in 2000, and graduating from Cal Poly in San Luis Obispo, she brings a background of Agricultural Business to combine with her knowledge of the local real estate market. Working with her family and their decades of local real estate development, she is deeply connected to the roots of our community and its growth.
“This area continues to grow as people discover what a great travel destination it is, and what a great wine region it has become. Eventually, they realize what a great place it is to live and work as well. Adapting to the needs of our clients in a changing environment is always a priority. We remain the longest standing brokerage in a community we are deeply invested in. Our longevity is attributed to our innate ability to understand the North County: its people, its properties, and its culture.” -Kandie

Ever since the NAR settlement took effect in August 2024, the real estate industry has been a little on edge, waiting for the next changes to take effect. 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’s agent commissions would be greatly reduced or eliminated entirely. This hasn’t happened, but it could be partially due to the market slowdown. Right now, many markets have low demand, causing sellers to offer concessions to homebuyers for many purposes. In other words, if the market picks up, sellers could potentially stop offering concessions, like buyer’s agents’ commissions. Now, there are solutions for that, but the changes and the effects are worth thinking through ahead of time.

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, buyer’s concessions, used for commissions, could be one of the first things they stop offering buyers.

This would mean the buyer is responsible for the commission. Keep in mind this will limit what homes that buyer can now afford to purchase. If the seller is NOT offering the concessions, they may eliminate many of their potential buyers.

3. My last tip would be: Work hard and make money now, while preparing for the future. Despite whatever changes might occur when the market picks back up, buyer’s agents can still be successful 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, they always do, and we always survive it. 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. Thanks for listening.