Steven Huang, president of the San Francisco Association of Realtors, said these new rules will also force realtors to educate their clients about the complicated home selling and buying process.

“A lot of times, consumers are not educated from A to Z up front,” he said. “We as real estate agents need to just thoroughly educate the consumer and let them know what our value is and then let the consumer decide what is a fair payment for that service.”

The lawsuit is just one harbinger of change for the real estate industry. A proposed state bill currently making its way through the Senate titled “Buyer-Broker Representation Agreements” would, if passed, require a buyer’s agent to enter into a contract detailing compensation rates and services the agent would provide before the agent starts touring homes with their client.

“This contract will actually have you sit down and go over why you’re being compensated, how you plan to be compensated and what kind of value you are bringing to the table for your client,” Michelle Perry, president of the Santa Clara County Association of Realtors, said. “Now we’re going to show our value even more.”

As the Federal Reserve is expected to lower interest rates next month and realtors are seeing a rise in homes being actively listed in the Bay Area, agents are preparing to see how these new rules play out.

“This is happening as the market is moving along and we’re anticipating a pretty busy fall,” said David Stark, a spokesperson for Bay East Realtors Association. “Call us in three months and then six months to see how it’s working out.”