Buyers’ Agent Commissions to Rise in 2023
Despite an overall slowdown in the housing market next year, buyers' agent commissions are expected to rise slightly due to fewer agents brokering fewer deals at lower prices. Real estate experts advise agents looking for ways to increase their income during this time should focus on providing additional services such as staging or virtual tours.
Dec. 29, 2022 4:58PM
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A picture of a house with a "For Sale" sign outside and a real estate agent standing nearby talking on their phone.
The housing market is expected to slow down in 2023, with home sales falling to their lowest level since 2011. Despite this downturn, buyers’ agent commissions are expected to rise slightly due to fewer agents brokering fewer deals at lower prices. The Midwest and Northeast regions of the US are predicted to hold up best as the overall market cools off, as these areas tend to be more stable and didn't experience the same pandemic-fueled buying frenzy that other parts of the country did. The number of home sales is projected to drop by 16% compared with 2022 levels, largely due to affordability challenges for potential buyers. This decrease will lead to fewer agents working on each deal, resulting in higher commissions for those who remain active in the market. Real estate experts caution that while there may be an uptick in commission rates next year, it won't make up for lost income from reduced sales volume. They advise agents looking for ways to increase their income during a slow housing market should focus on providing additional services such as staging or virtual tours.