JACKSONVILLE, Fla. — Homebuyers and sellers could have more of a voice in the process this summer.
The National Association of Realtors agreed to a $418 million lawsuit to change the way real estate is bought and sold.
“Love the new area," said New Homeowner Richard Benjamin. "I like it. I have no complaints. I know my daughter likes it.”
First-time home buyer Benjamin is excited to finally be in his new home.
He appreciated everything his agent did for him along the way from finding the land, to construction, to closing.
However, one thing he didn’t really understand – how she was getting paid, who was paying her, and how much.
“This person gets this much money, this person gets this much money, and I’m like, ‘Ehhh, you know, whatever. Like, what do you get?’ Then you feel bad because you’re like, ‘Do you get money? Do you not get money? Like, what are we doing here,'" said Benjamin.
Six percent commission has long been the standard in real estate – three for the buyer’s agent and three for the sellers.
But those numbers aren’t fixed, they never have been.
A recent lawsuit is all about making sure buyers and sellers know they have a say.
“I didn’t know that you can even change," said Benjamin. "I didn’t even notice that on my paper. I’m not going to lie to you. That was new to me.”
According to the National Association of Realtors, the settlement came with two major changes.
- Commission rates can’t be posted on the MLS – they’ll have to be negotiated, bringing more power to the buyers and sellers to determine how much both agents will make.
- Mandates Buyer-broker agreements – meaning buyers will have to sit down with their agents before they start touring to discuss what services and value the agent provides, and for how much.
Engel & Volkers First Coast Owner/Broker Corey Hasting says one thing still needs to be worked out – what the new standard will be for paying the buyer’s agent.
Whether that’s a percentage commission, credit or if the buyer will have to shoulder any of the load.
“Sellers will still need agents," said Hasting. "Buyers will still need representation if they choose to. How they get paid from there is all determination between the two parties. One of my predictions is the word credit will take over from commission on the transaction side of it.”
Under the new structure, it’ll likely vary more from sale to sale, so buyers like Benjamin will have a say.
That’s something Hasting is looking forward to.
“It gives our industry the ability to be taken seriously again," said Hasting. "The last several years, everyone and their mother got their real estate license because it was easy, but now we have the opportunity to make it a true profession.”
Hasting says if you’re on the market right now, it’s business as usual.
The changes won't impact the market until at least the summer.