How a Realtor Commission Settlement Could Affect Home Buying
How a Realtor Commission Settlement Could Affect Home Buying
Starting mid-July, homebuyers will have to sign an agreement with their real estate agent when touring houses posted on MLS.
Starting mid-July, homebuyers will have to sign an agreement with their real estate agent when touring houses posted on MLS.
The settlement was mandated as part of a class action lawsuit by home sellers against the National Association of Realtors (NAR).
Buyer-saver agreements will be required, which could lower fees charged to buyers and sellers in the homebuying process and make the industry more competitive
Currently, seller-savers typically get a 5% to 6% commission on the sale price and split it with the agent representing the buyer
Homes that offered lower commissions were 5% less likely to sell and took 12% longer to sell, according to a 2017 paper
Little change in commissions is expected in the near-term, with agents negotiating the same split as before through means other than the MLS
Increased competition could force commissions under 2% and create more opportunities for clients and real estate agents to negotiate on service cost
There may be communication of buyer agent compensation on other channels like brokers' websites.