HOUSTON, Texas (KTRK) — Real estate agents are preparing for the biggest industry shakeup in decades, with commission structures changing starting Saturday, August 17th.
The new rules are the result of a settlement announced by the National Association of Realtors in March. They will eliminate a long-standing 6 percent commission paid by sellers that can drive down home prices.
Prior to this settlement, the industry essentially set the commission rates.
The seller’s agent typically charges the seller a 6% commission and then shares that commission with the buyer’s agent.
From Saturday, sellers will no longer be required to offer commission to buyer’s agents, potentially allowing them to make more money on property sales.
Related article: This week sees biggest upheaval for real estate agents in 100 years
From August 17th, new rules will come into force which will overhaul the way estate agents get paid for helping people buy and sell homes.
This also means that the homebuyer will ultimately be responsible for compensating the agent.
“We’ll see how it goes,” says Tricia Turner of Tricia Turner Properties. “Right now, buyers don’t have the extra money. They have to pay closing costs and a down payment. Adding fees on top of that definitely changes things. Homeowners are already saying, ‘No, I don’t want to pay a buyer’s agent’s fee.'”
The new rules will require home buyers to sign a representation agreement with a real estate agent before even viewing a home.
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