Those changes will impact how agents across the United States get paid to help people buy and sell homes. For decades, the model surrounding real estate commissions has been fairly straightforward.At the close of escrow, the seller typically pays a 5% to 6% commission, sometimes less, with half going toward their agent's brokerage and the other half going to the buyer's side.
But on August 17 that will change.
"Overall, it's a huge change. It really is. It changes the way buyers agents get compensated,” said Mike Safiedine, a real estate broker with Remax Connections in San Diego County.
The changes
So, as part of a settlement, the National Association of Realtors agreed to two key changes.
•The first change prohibits agents' compensation from being included on the MLS.
•The second change requires homebuyers to enter into a written buyer agreement before touring a property together - agreeing to pay their realtor commission if a seller doesn't cover the cost.
The changes could save sellers money, but force buyers to come up with more to pay those fees. On the other hand, sellers may be willing to part with their homes for less if they're not paying as much commission.
The fees can also be negotiated on both ends as part of the deal.
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