New rules around real estate fees are taking effect after a landmark settlement in March. Buyers and sellers are gaining negotiating power in exchange for new costs and paperwork in some cases.

Changes to realtor commissions taking effect this weekend could give home sellers a lot more negotiating power — and for buyers, potentially some more paperwork.

Starting Saturday, realtors will be barred from offering compensation on multiple listing services (MLS), making it harder for buyers’ agents and sellers’ agents to negotiate fees on their own, as they’ve done for decades.

Until now, home sellers traditionally had to pay commissions, commonly in the range of 5% to 6%, to their agents, who then split that fee with the buyer’s agent upon making a sale. The new rules, which follow a historic $418 million settlement with the National Association of Realtors in March, leave more room for sellers to negotiate those fees down and make it more appealing for buyers to forgo agents entirely.

“It’s the biggest change probably in the history of real estate,” said Mike McCann, a realtor in Philadelphia. “It has created a lot of fear, a lot of anxiety” within the industry, he said.

With the MLS no longer serving as a forum for negotiation, it remains to be seen how agents, buyers and sellers will choose to cover commission costs. While sellers could pass on any savings on the commission to the buyer in the form of a lower home price, it’s also possible that sellers could increasingly choose to ask the buyer to cover some or even all of the costs.

  • massacre@lemmy.worldEnglish
    194·
    4 months ago

    It has created a lot of fear, a lot of anxiety” within the industry.

    Good. It’s the biggest parasitic job in the world…

    • bobs_monkey@lemm.ee
      107·
      4 months ago

      Bullshit. A good realtor is worth their weight in gold. Buying a house is one of, if not the most expensive purchase anyone will make, and a good realtor will help a buyer not only find the right place, but help them navigate the process and potentially save them the hazard of overpaying for what could be a money pit dump. Sure there are unscrupulous realtors out there, but there are plenty good ones too.

      • Hacksaw@lemmy.ca
        101·
        4 months ago

        You’re describing a home inspector. I’ve never had a realtor assess the condition of a house. It’s not their job. Plus, even with the best realtor, having an intermediary during negotiations only ever makes the process more complicated. If you have a home inspector and a good lawyer you can easily do rest yourself with no real risks. Both of them charge fixed fees for their services too and I wouldn’t buy a house without both anyways. Realtors are 100% superfluous.

      • QuarterSwede@lemmy.world
        41·
        4 months ago

        I’ve had both experiences, with the last one being a fantastic agent who sold our home for top dollar and also pitched in to help us paint our kitchen a color that would sell. I agree, some are parasites but some are great and worth the value they’re asking for. Sounds like every business honestly.