This post has been republished with permission from Mike DelPrete.
For years, the traditional real estate commission structure in the U.S. has remained relatively impervious to change. Buyer agent commissions — the fee paid to a buyer’s agent when a house is sold — is the focus of multiple class-action lawsuits. But it turns out that the biggest threat to the traditional structure might be iBuyers, which have been waging a silent, systematic war on buyer’s agent commissions.
This research study looks at buyer agent commissions offered by iBuyers: 11,500 transactions over two years across four of the largest iBuyer markets: Phoenix, Atlanta, Raleigh and Dallas.
The data is sourced from the multiple listing systems in each market, which records buyer’s agent commissions offered for every home listed for sale. The data does not include transactions that occur off-market (sales to REITs) nor to buyers that approach iBuyers directly, without