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How Agent Steering and Commission Structures Can Undermine Fair Deals for Homebuyers
As a real estate attorney advocating for homebuyers and co-founder of Negotiate the Comp (NtC), I’ve seen firsthand how commission structures can quietly tilt the playing field. A recent study from the University of Texas at Austin’s McCombs School of Business confirms what many buyers have suspected: agents may be steering buyers away from homes with lower commissions—even when those homes are a better fit.
And while recent rule changes by the National Association of Realtors (NAR) aim to reduce this practice, it still exists. That means buyers need to stay informed and proactive.
What the Study Found
Researchers analyzed 265,000 listings across 30 major U.S. markets (June 2021 – February 2022) and discovered:
- Homes offering below-market commissions to buyer agents were 51% less likely to sell.
- These homes received 8% fewer page views on platforms like Redfin. They took 33% longer to sell than homes offering standard commissions.
This practice—known as steering—suggests that agents may sometimes prioritize their own paycheck over their client’s best interests.
Why This Matters for Buyers
In most U.S. home sales, the seller sets the commission for both the listing and buyer’s agent. This means:
- Buyer’s agents know exactly what they’ll earn depending on the home chosen.
- Homes with lower commissions may get downplayed, overlooked, or discouraged.
- Buyers lose the chance to evaluate every available property based solely on value and suitability.
The result? Buyers face limited options, weaker negotiating power, and potentially higher costs.
Legal and Market Shifts: A New Opportunity
The antitrust settlement involving NAR (effective August 17, 2024) has shifted the landscape:
- Buyer-agent commissions are no longer listed on MLS platforms.
- Buyers are encouraged to negotiate agent compensation directly.
- Transparency and upfront discussions about fees are now the norm.
At the same time, market conditions in many areas have swung toward a buyer’s market. Agents now want buyer clients more than ever—giving you greater leverage to negotiate commissions down.
How Buyers Can Protect Themselves
This new environment creates opportunities for buyers to:
- Negotiate fairer commission structures that reflect their best interests.
- Ensure agents are contractually obligated to show all qualifying properties.
- Demand fiduciary loyalty, so compensation doesn’t skew advice.
How NtC Helps You “Steer Clear” of Steering
At Negotiate the Comp, we equip buyers with tools and strategies to make commission structures work for you, not against you.
Our resources help you:
- Negotiate buyer-agent agreements on favorable terms.
- Align commission incentives with your goals, not your agent’s.
- Hold agents accountable to professional and fiduciary standards.
Buying a home is stressful enough—you shouldn’t also have to worry about hidden conflicts of interest.
If the process feels overwhelming, Mintzer Legal is here to support you. Visit www.mintzerlegal.com to get started.
Final Word
Commission structures may look like “standard practice,” but they carry real risks for buyers. By educating yourself, negotiating upfront, and leveraging new legal
protections, you can take control of your transaction and ensure your agent’s loyalty is truly with you.
