This data was used to analyze the relationship between house prices and agent committees, to investigate how coparfish representation agreements and the state legislative committee commissioning bans influenced committees.
While the agreements of the copper judgment were imposed by the National Association of Realtors‘ (NAR) Regulation Agreement for Commission -Right case, they were already mandatory in 15 states before the settlement came into effect in August 2024.
The report showed that the commission rates have fallen from around 3% in the nineties to 2.7% in 2023. Moreover, the scope of committees has also increased. The data showed that in 2002 the rates were about 3%, but in 2023 they were spread between 2%and 2.5%.
Despite the decrease in commission rates, the report still found that the highest bar remained at 3%. This suggests that the industrial standard of a committee of 6% is divided between the Buy-Side and Sell-Side agents continues to exist.
“This perseverance can be explained by the steering and how bad properties with the low committee. Low committee lists stay on the market longer and are less inclined to sell,” said the report, which cited from 2019.
The report quoted another study from 2017 in which it was claimed that “brokerage companies offering low committees are less inclined to obtain cooperation from agents from larger companies, who are making most of the real estate market. They cannot compete with brokers of full-commission-brokerage.”
When taking into account median house prices – which have almost doubled since 1995 – the researchers discovered that the rising prices would have felt all impact agents as a result of lower committee rates.
“The variation in rates in metropolitan areas is negatively correlated with house prices, and we believe that control for house prices in a panel regression eliminates the downward time trend,” the report said.
“If house prices are higher compared to consumer prices or the prevailing incomes, brokers may be more willing to work for lower commission rates, because the higher selling price compensates for the lower rate.”
In addition, after investigating commission rates before and after the requirements of the copper representation agreement and discount bans came in force in various states, and the researchers, the researchers, found “no material or statistically significant effects of the requirements of the copper -verbal agreement or copper -in -handed commissioner,” some materials. ”
The report noted that the NAR arrangement removed all compensation offers from the MLS, the researchers found that “the issues of steering and collusion could reduce” and “lead to more substantial changes in business models and agent committees in the future.”
But the researchers also acknowledged that listing agents still share compensation offers, cooperative or from the seller, in places next to the MLS.
