- Two key changes to the homebuying process are scheduled to go into effect Saturday, stemming from a settlement that ended a lawsuit against the National Association of Realtors by home sellers.
- The changes could pressure some agents to offer their services at lower rates than they have in the past.
- Buyers will have to sign an agreement with the agent representing them before touring any houses, and Multiple Listing Services will no longer list offers of compensation to buyer’s agents.
Starting Saturday, the homebuying process will face significant changes as home buyers and sellers confront new challenges regarding the role of buyer’s agents and how much they should be paid. These changes are a result of a lawsuit settlement earlier this year between the National Association of Realtors (NAR) and a group of home sellers, who accused NAR of conspiring to keep buyer’s agent fees high.
Impacts on the Homebuying Process
The settlement mandates several changes to the homebuying process, including requiring buyer’s agents to sign an agreement with clients before showing properties and preventing sellers from offering commission rates to buyer’s agents on the Multiple Listing Service (MLS). Traditionally, real estate agents have charged a 5%-6% commission, usually split evenly between buyer and seller agents. This practice may now be disrupted.
Realtors’ Perspective on the Homebuying Process Changes
Despite the potential shakeup in the homebuying process, veteran real estate agents remain confident. They argue that the complexity of buying and selling a home means people will still need professional guidance. Jeff Scislow, a RE/MAX agent with 38 years of experience, believes that skilled agents will continue to thrive and that their services will remain in demand.
