New real estate rule change helps home buyers
Real estate deals have a big rule change that kicks in this weekend that gives home buyers a lot more power in the process. A big lawsuit against the industry in March changed the playing field. The FOX 5 I-Team’s Dana Fowle explains how.
ATLANTA – Real estate deals have a big rule change that kicks in on Aug. 17. Home buyers will have more bargaining power in the process. A big lawsuit against the industry in March changed the playing field.
How it’ll work is laid out in a $418 million settlement between the National Association of Realtors and home sellers. Typically, real estate agents have received between 5 and 6% commission on sales. Now, it’ll be in writing that buyers can negotiate that price.
And here’s a big change: The buyer will have to sign an agreement to be represented by a realtor before even looking at the first house, then, when and if you are getting more serious about buying a home, there should be a second contract. This is where how much commission your agent will make comes in. That could be a flat fee or maybe a percentage of the sale. That’s where negotiation comes in.
But, you may be used to splitting that commission with the seller. Once you lock in, you are fully responsible for the compensation if the seller decides not to participate in the agent’s commission. Now, the seller can offer compensation to your agent, too, but that offer cannot be shared on the MLS service. Multiple Listing Services are the platforms where buyers and listing brokers share information about a sale.
The National Association of Realtors has created a robust fact sheet for both buyers and sellers. This would be valuable to read and understand before heading out to find a new property: See the face sheet here.