As a local Realtor, I’ve been following the landmark legal settlement governing real estate commissions that takes effect in a matter of days. According to San Diego Union-Tribune, the National Association of Realtors agreed to two changes in how buyers’ agents get paid:
* Seller offers to buyer agents no longer can be made in a multiple listing service, or MLS.
* Homebuyers now must sign contracts spelling out how much their agents will get paid before the agents can begin showing them homes.
While some sellers may hope for a drop in the typical 5 percent to 6 percent commission rate and to shed the burden of paying buyer commissions, local real estate brokers doubt those changes will occur.
The settlement is generating a lot of confusion and questions. Many brokers and agents are scrambling to get up to speed on the new rules and how to explain them to their clients. While agents are being trained, some brokers are still unaware of the lawsuit and settlement.
Some agents are learning how to explain new legalese to clients, especially why buyers now have to sign contracts. Some brokers are even practicing scripts and doing role-playing to prepare.
Sellers have different expectations than real estate agents, especially after reading headlines saying 6 percent commission rates are going away. Agents are saying that if sellers don’t offer buyer agents compensation, their home may not be a priority to show.
While it’s true that the settlement will change how compensation is handled, the current compensation system will remain largely intact. Sellers will continue paying buyer’s fees, negotiating commission payments along with other deal points like price, repairs, and contingencies.
These changes will affect everyone in the real estate industry, from buyers and sellers to agents and brokers. I’m here to help you navigate this new landscape and make sure you understand your options. If you’re planning to buy or sell a home in the near future, please don’t hesitate to reach out to me. I’m always here to answer your questions and provide expert advice.
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