SALT LAKE CITY — The National Association of Realtors has reached a settlement that could change how people buy and sell their homes.
Currently, the sales commission split between the seller’s real estate agent and the buyer's agent would be about 5-6%. That’s built into the price of the home, usually paid by the seller.
According to real estate agent Terry Bailey, this has lead to the lawsuit being settled and may result in changes with the guidance deadline announced for this summer.
Realtor Eric Brown believes a change in the transparency of available options would be welcome, especially when the standard percentages could be replaced with negotiations for a commission.
“After July, what the seller and the seller agent will do if they are working with the NAR and they are listed on an MLS, they won’t be able to disclose a buyer-agent commission," said Brown. "The sellers’ agent will have to talk to the buyers’ agent about what the seller and buyer are able to do."
Multiple Listing Services, or MLS, share information about properties for sale.
One agent said the possible changes could impact first-time home buyers, who could have to pay more for an agent because the commission would no longer come just from the seller.
"They're probably the folks that need the most help throughout the transaction and throughout the process,” said Bailey. “But, the issue is, if they're having to come out with the down payment, and your closing costs, and agent commission, it becomes very hefty and it becomes very difficult for especially first-time home buyers, to enter the market with representation."
Some agents say they don’t think this would impact home prices much.
"For buyers, the biggest factor they are going to look at is the monthly payment. Regardless of the price, because the price can differ a little bit, I really don’t see there being a big change in terms of how much home sales,” added Bailey. "I think this is an opportunity for people that want to do real estate things to have a chance to do it a different way. And i think this will be cool because it will be a new road for everyone doing that."
