Weekly Roundup | Agent Compensation Trends

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Let’s make your week a little easier. The Empire Weekly Roundup newsletter brings you real estate tips, market know-how, and CE updates—all in one quick email.

🗣️ Quote of the Week

“It’s not about the money, though that’s nice to have. At the end of the day, it’s really about matching the right buyer to the right seller. We’re matchmakers—real estate matchmakers."

― Valerie Fitzgerald (The Valerie Fitzgerald Group)

🚀 Featured Article

What a New Fed Trend Study Reveals About Agent Compensation Trends

If you’ve been wondering where real estate commissions might be headed, you’re not alone. A lot has been happening around commissions lately (new industry rules to high-profile lawsuits), and many agents are curious (and maybe a bit concerned) about what’s next. Well, the Federal Reserve recently released a research note titled “Commissions and Omissions: Trends in Real Estate Broker Compensation” (May 2025) that digs into nearly 30 years of commission data. The findings might surprise you, but they also offer some reassurance. Let’s break down what the Fed researchers found, how it compares with other insights on commission trends, and what it all means for you as an agent.

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✏️ Back to School Deal!

Use the savings to buy those extra school supplies! Take 20% off all real estate continuing education courses at Empire Learning this week. Use code BACKPACK at checkout and "pack up" the savings while earning those credit hours.

🍎 Browse CE Courses

Offer valid through August 17. Use promo code BACKPACK at checkout.

🏆 Trending on Empire Learning

📸 Photoshop vs. Floorplan – Listings That Look Nothing Like Real Life

That bedroom looked enormous in the photos… until your buyer walks in to find a glorified closet. In the age of wide-angle lenses, virtual staging, and AI-“enhanced” skies, mismatches between listing images and reality have become commonplace. It’s almost an industry joke... 75% of buyers say they feel disappointed when a home looks different in person than in the pictures. This disconnect arises because nearly 90% of buyers start their home search online, and listing photos influence the decisions of 87% of buyers, so agents and sellers are highly motivated to make those photos pop. The result is we get sparkling, spacious-looking interiors and perfect sunsets in the sky, every time. Rooms that are shot with high-resolution cameras can make spaces appear about 30% larger than reality, and bland exteriors are digitally retouched to add blue skies or even virtual furniture. Listings featuring twilight photos get 3× more showings on average. It’s no wonder buyers show up asking, “Is this even the same house from the pictures?” Their balloon of excitement deflates as they hear the sad trombone of reality. So how can agents manage buyer expectations when marketing needs meet reality? Here are a few strategies to bridge the gap between Photoshop and floorplan...

• Include Floor Plans with Dimensions. A simple floorplan can ground buyers’ expectations in reality. 93% of buyers say they prefer listings that include a floorplan, which lets them gauge room sizes and layout accurately.
• Disclose Virtual Enhancements. If a photo has been virtually staged or a drab sky digitally swapped for sunny blue, say so upfront. A small note like “virtually staged furniture” or “sky enhanced for marketing” maintains trust.
• Set Expectations in Conversation. Good agents prep their buyers before showings (e.g., “The photos look great, but note this condo is only 800 sq. ft., so the wide-angle lens makes it appear larger.”
• Encourage Live or Video Tours. For out-of-town clients or sight-unseen offers, insist on a live virtual tour or detailed video walkthrough. A camera phone walkthrough can reveal things static photos won’t, and it gives you a chance to point out both highlights and flaws.

🕵️‍♀️ Buyers Who Do Too Much Homework – And Still Don’t Trust You

They’ve read every Reddit thread on real estate, watched 14 hours of YouTube tutorials on homebuying, and show up to your meeting armed with printouts from mortgage blogs. In their mind, they’re fully prepared, maybe even more prepared than you. Welcome to the era of the “over-researched, under-trusting” client. These buyers do extensive homework online (and indeed, virtually all buyers use the internet to search for homes nowadays). The upside is they’re informed and engaged. The downside? They might challenge your pricing, second-guess your advice, and pepper every discussion with “But I read on XYZ site that…” skepticism. If you feel your expertise is under fire, you’re not alone – over two-thirds of Americans (67.5%) initially say they don’t trust real estate agents. Many arrive with a chip on their shoulder, assuming you’re “just a salesperson” and determined not to be duped. So how do the good agents handle an over-researched but under-trusting client? The key is not to get defensive, but to channel that energy into a collaborative relationship. Here are a few tactics seasoned agents use to turn skeptics into satisfied homeowners...

• Practice Active Listening (and Patience). First and foremost, hear them out. Let the client unload all their internet-sourced ideas, concerns, and theories. Nod along as they explain the niche financing trick they heard on YouTube or the pricing anomaly they found on Reddit. Active listening shows respect for the effort they’ve put in. Often, they just want to feel acknowledged. And in the process, you’ll learn exactly what their worries and priorities are. As tough as it may be, resist the urge to interrupt or “correct” every slight misunderstanding at this stage. Building rapport comes before delivering facts.
• Acknowledge and Validate (to a Point). Find common ground in their research. For example: “You’re absolutely right that interest rates have historically averaged around X%. The blog you read did a great job explaining that.” or “I saw that Reddit thread too. Those folks made a good point about condo HOAs.”
• Educate with Facts. Inevitably, some of what Dr. Google told them will be outdated, inapplicable, or plain incorrect for their situation. This is where you gently reassert your expertise. Come armed with hard data and local examples: “I know the YouTube guy said XYZ about market comps, but let me show you our market’s latest data. Here’s a chart of last quarter’s sales in this neighborhood”. Visuals and sources help. Clients who love research respect evidence.
• Leverage Third Parties. Recognize that these clients trust other people’s opinions, so use that. Share testimonials or reviews from past buyers who were initially skeptical but ended up happy. (Indeed, 62% of home buyers choose their agent based on online reviews and ratings, so a strong testimonial can carry weight.)

🧊 Cold Feet Season – What Agents Know About Second Thoughts

Everything seemed lined up perfectly... The buyers loved the house, their offer was accepted, the inspection went fine… yet suddenly they’re balking. Calls aren’t being returned. They’re expressing doubts that seemingly came out of nowhere. Welcome to “cold feet” season, when would-be buyers get second thoughts and begin wavering on a purchase. Every experienced agent knows this scenario, especially prevalent in uncertain times. In fact, recent market data shows an uptick in buyers backing out. In June 2024, about 56,000 home-purchase agreements fell through – roughly 15% of all contracts that month, a record high. Redfin agents noted that many buyers (and even some sellers) were getting cold feet due to high costs and economic jitters, causing deals to collapse late in the game. But it’s not always the market’s fault. Even in “normal” markets, real estate is an emotional rollercoaster. Sometimes it’s the mindset of the buyer... The weight of the commitment, fear of making the wrong decision, or simply paralysis at the thought of change. Here are some ways agents spot and handle buyer cold feet and help clients overcome hesitation (or, when necessary, step back gracefully)...

• Lay the Groundwork Early. The best cure is prevention. From day one, set realistic expectations and educate your buyers about the process. Explain that last-minute jitters are normal in such a big decision. Encourage them to voice any concerns, no matter how small. Often, simply knowing that feeling anxious is common will help them not spiral when it hits. Also, make sure they don't have any unrealistic expectations about getting a “perfect” deal or home. Those can trigger disappointment later.
• Watch and Listen for Hesitation Clues. Pay attention during home tours and contract discussions. Is your buyer unusually quiet or fidgety? Are they asking the same questions repeatedly (perhaps seeking reassurance)? Do they keep delaying the next step (“Maybe we should look at one more house... just to be sure”) even after finding a great match? These can be signs of brewing doubt. Once under contract, if they start raising new issues – re-reading every contract clause, or nitpicking about a minor repair – it might be more about buyer’s remorse creeping in than the issue itself. Rather than dismiss these, address them head-on.
• Reinforce Their “Why”. When cold feet emerge, it’s helpful to gently remind buyers why they started on this journey. Bring the conversation back to their core motivations: “I know it’s scary right now, but remember how excited you were about having a backyard for the kids and the dog? That hasn’t changed. This home still gives you that.” Re-ground them in the positives and the goals they’re trying to achieve.
• Know When to Recommend a Pause. Perhaps the hardest part... Sometimes the right call is to step back and not push forward. If a buyer’s hesitations persist despite your best counseling, or if new circumstances have arisen (job uncertainty, relationship changes, etc.), a pause might save them from regret and save you from a doomed deal. Buyer’s remorse is real, and forcing a sale that someone is half-hearted about can lead to fallout (canceled contracts, or a resale soon after with an unhappy client). Statistics show that over 80% of recent buyers have at least one regret about the home buying process or the home itself. You want to minimize those regrets, even if it means slowing down. Reassure the client that it’s okay to delay or even walk away if that’s truly what’s best for them.

🎯 Quick CE Tip of the Week

🐍 If There’s a Snake in the Crawlspace, What’s Your Legal Duty? Sounds wild, but it’s a real question, and CE probably covers it. From pets to pests to paranormal activity, your continuing education isn’t just theory. It prepares you for the calls no one else knows how to handle.

→ Start Today! (And Find Out If You Need to Disclose That Snake...)

📈 Market Highlight: The Great Wait-and-See

🔥 Did You Know? As we kick off August, the housing market is showing signs of settling into a more balanced groove. Residential agents across the country are seeing a shift... More homes are available for sale than we've seen in recent years, but buyers remain cautious. Let's dive into the key trends happening nationally with inventory, buyer and seller behavior, mortgage rates, and prices, and what they mean for you and your clients in this evolving "normal."

→ View Full Market Highlight

💡 Feedback Welcome!

We'd love your feedback. The lifeblood of any good business is figuring out what their customers truly care about — the best agents also learn this about their clients.

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Happy Learning,

— The Empire Learning Team
www.empirelearning.com