#United States #St. Louis #Real Estate #NAR Settlement #Agent Commissions

Rising Agent Commissions in 2025

In a recent nationwide survey conducted by Clever Real Estate, it has been reported that the average combined commissions for buyers' and sellers' agents reached 5.44% in 2025, up from 5.32% in the previous year. This marks a notable change just a year after the National Association of Realtors (NAR) reached a landmark settlement regarding brokerage commission practices. For the average home valued at $367,711, this translates into an approximate total realtor fee of $20,003, broken down into $10,186 for the seller's agent (2.77%) and $9,818 for the buyer's agent (2.67%).

Overview of Commissions

Despite the changes stemming from the NAR settlement, whereby sellers are no longer mandated to pay the buyer's agent fees, many sellers' agents still suggest including this fee as a concession to enhance marketability. This trend reflects the evolving landscape of real estate transactions in the wake of new regulations. While the average commission rate observed in 2024 was the lowest in the last five years at 5.32%, current rates are climbing back towards the 2023 average of 5.49%. Interestingly, sellers today are paying slightly lower commission rates compared to five years ago when the average was 5.5%.

Variations Across States

Commission rates vary greatly by state. Recent data highlights that the states with the highest average total commission rates include:

• - Michigan: 6.03%
• - Ohio: 5.87%
• - Missouri: 5.77%
• - Minnesota: 5.75%
• - Colorado: 5.74%

Conversely, the states with the lowest average rates are:

• - New Jersey: 4.92%
• - Maryland: 5.13%
• - Illinois: 5.18%
• - California: 5.18%
• - Alaska: 5.22%.

Interestingly, while states with higher home prices typically charge lower percentage-based commission rates, the overall commission amount can still be significant due to higher property values.

Financial Impacts

In terms of dollar amounts spent on commissions for median-priced homes, some of the most costly states include:

• - Hawaii: $44,282
• - California: $41,246
• - Massachusetts: $36,400
• - Washington: $32,739
• - Washington, D.C.: $32,274.

On the flip side, the least expensive states for commission costs are:

• - West Virginia: $9,048
• - Mississippi: $10,263
• - Louisiana: $11,307
• - Arkansas: $11,788
• - Oklahoma: $12,053.

From 2024 to 2025, commission rates have increased in 39 states, decreased in 10, while New York remained static. Although significant changes are still evolving from the settlement, these commission fluctuations signal ongoing dynamics within the real estate market.

Conclusion

Clever Real Estate aims to keep both buyers and sellers updated as the real estate landscape transforms post-NAR settlement. The increase in commissions is a reminder of the complex interplay between regulations, market demands, and the dynamic nature of real estate agent services. With a large database of agents and resources, Clever continues to lead the charge in connecting customers with realtors while advocating for more transparency in the real estate commission landscape.