A set of rules regulating how real estate professionals do business went into effect on Saturday.
“As a Real Estate professional our contracts are changing a little bit,” Realtor Kristina Buckner told NBC 7.
Until now, home sellers traditionally paid the commission for both their agent and the buyer's agent. The commission was typically in the 5% to 6% range. The commission was split among the buyer and seller’s agent when the sale was completed.
“Traditionally, sellers have paid for the buyers agent and they most likely in my opinion will continue to do so if the buyer can’t do that. The change in that is now that the buyer will be asking for that commission to be paid through closing costs,” Buckner said.
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The new rules are the result of a $418 million settlement with the National Association of Realtors that leaves more room for home sellers to negotiate those fees down.
The change could result in savings for people in the homebuyers market, according to some experts.
“I think what it’ll do is it’ll have some impact on the price. Not necessarily the asking price on the house but effective price that is paid because there is a certain asking price of the house then the commission is factored in,” University of San Diego Economist, Alan Gin, said.
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Now to ensure buyers are aware of the compensation that they may be responsible for, the National Association of Realtors is implementing another change requiring agents to enter into written agreements when showing a home.
The result of the settlement and the changes that followed are about transparency, according to market experts.
“If there’s any reason that a question comes up in regard to if you’re a buyer and you want to know how to get through this situation and if you’re responsible for the commissions, ask your Real Estate professional,” Buckner said.
