New National Association of Realtors settlement could have impact on real estate commission

Reporter: Ashley French
Published: Updated:

When it comes to buying or selling a home, the process could soon be changing for people looking to hire a realtor.

The National Association of Realtors (NAR) agreed on Friday to pay $418 million, roughly over four years, to resolve all claims against the group by home sellers related to broker commissions. The agreement must still be approved by a court, according to CBS News.

“I want people to have a home,” said Aprile Osborne, Founder of Call it Closed International of SWFL Real Estate. “I want to make sure that I can make a living, but also, at the same time, my goal is for you to be in a home.”

A home agent or broker representing a home seller typically splits a commission, often around 5% to 6% of the home’s sale price, with the agent working on behalf of the homebuyer.

What does that mean for home buyers who are looking to buy a home if this changes?

Yoselyn Hollow, broker and real estate coach for RE/MAX Realty Team, says it all comes down to signing a commission agreement between the home buyer and agent.

“What this means is that buyers are now going to have to sign an agency agreement or a buyer’s agency agreement of some sort, basically, for representation,” said Hollow. “In the real estate transaction, sellers can still offer to compensate to buyer’s agents that is their choice.”

The choice could soon be given to agents to present their commission percentage rate to the buyer versus it being listed.

“Now it just goes away off of the multiple listing services that we as agents use, it’s called the MLS for short,” said Osborne. “The MLS is now not going to state what that percentage is, is going to be presented to the buyer.”

Whether you’re looking to buy or sell, both agents say during the process, it’s not always about the cost but the quality of the realtor and the power to negotiate the best deal.

“I feel like a lot of times first-time homebuyers get discouraged in some of this type of news. I don’t want them to shy away from the market. It’s an incredible time to buy just really want you to be encouraged to buy and work with the right real estate agent,” said Osborne. “Find that agent that is going to fight for you that is going to negotiate, and is going to represent you well to make sure that you get the best deal.”

According to CBS News, housing experts expect the deal to shake up the housing market and even drive down home prices.

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