After the National Association of Realtors announced a settlement with groups of home sellers they'll be paid $418 million in damages and abolish regulations regarding commissions, it will effectively reshape the landscape of the real estate industry.
For a typical American home listed at $400,000, sellers are currently shouldering brokerage fees exceeding $20,000. These expenses are ultimately transferred to the buyer, resulting in inflated home prices across the nation.
Individual sellers frequently find themselves in a position where they lack the ability to secure more favorable terms due to the fear that reducing commissions might lead brokers to direct potential buyers towards alternative properties.
In the past, homebuyers didn't have to concern themselves with covering their real estate agents' fees. However, with the impact of this settlement, homebuyers may start feeling the burden of paying their agents in addition to other expenses. It is very probable that the emergence of new compensation models will arise as a result. These models, particularly for buyer-side agents, could depart from the traditional commission structure, possibly adopting flat fees or hourly rates. This shift is facilitated by newfound competition in the market, enabling the introduction of innovative payment methods that were previously non-existent.
Right now, real estate professionals are not required to make any changes in how are they conducting their business. In fact NAR is recommending for their members to consistently inform and update their clients that commissions are negotiable and usually determined through agreements between brokers and their clients.
If you are considering selling your home, don’t hesitate to reach out to us! Gain the opportunity to save significantly by negotiating rates and receiving best service throughout the seamless sales process!