New real estate regulatory changes favor home buyers
Real estate transactions are facing major rule changes that take effect this weekend, giving homebuyers more power in the process. A major lawsuit filed against the industry in March changed all that. The FOX 5 I-Team’s Dana Fowle explains how it happened.
ATLANTA — Major rule changes are coming to real estate transactions starting Aug. 17, giving homebuyers more negotiating power in the process. A major lawsuit filed against the industry in March changed the playing field.
The structure is spelled out in a $418 million settlement between the National Association of Realtors and home sellers. Realtors typically receive a commission of 5 to 6 percent of the sale. Now it will be documented that buyers can negotiate the price.
And here’s the big change: Before a buyer even looks at their first home, they have to sign a contract to have a real estate agent represent them. Then, once they start getting more serious about buying a home, they have to sign a second contract. Now comes the question of how much commission the real estate agent gets. Sometimes it’s a flat fee, sometimes it’s a percentage of the sale. This is where negotiation comes in.
However, you may be used to splitting that commission with the seller. Once contracted, if the seller decides not to pay your agent’s commission, the compensation becomes entirely on you. Currently, sellers can also offer compensation to agents, but that offer cannot be shared on MLS services. Multiple Listing Services is a platform where buyers and listing brokers share information about the sale.
The National Association of Realtors has developed an extensive fact sheet for both buyers and sellers that is helpful to read and understand before you set out to look for a new property. View the fact sheet here.
