HOUSTON, Texas (KTRK) — Realtors are bracing for the biggest shakeup to their business in decades. Starting Saturday, Aug. 17, their commission structure will change.
The new rules result from a settlement announced in March by the National Association of Realtors. They eliminate the long-standing 6% commission sellers pay, which could potentially lower home prices.
Before this settlement, the industry was essentially setting commission rates.
A seller’s agent typically charges the seller 6% and shares the fee with the buyer’s agent.
Starting Saturday, sellers won’t be expected to make commission offers to buyer agents. That gives them the potential to pocket more money from selling their property.
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Starting August 17, new rules will roll out that overhaul the way Realtors get paid to help people buy and sell their homes.
It also means home buyers will ultimately be responsible for compensating their agent.
“We’ll see how this goes,” Tricia Turner with Tricia Turner Properties said. “Right now, buyers don’t have extra money. They have to come up with their closing costs and downpayment. To stick another fee on top of that is definitely going to change things. I will tell you, homeowners already are saying, ‘No. I don’t want to pay that buyer agent’s compensation.'”
Under the new rules, home buyers will also be required to sign a representation agreement with an agent before even touring a home.
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SEE ALSO: In 22 states and DC, buyers need six-figure household income to afford a typical median-priced home
A new report finds that in nearly half of US states, buyers will need a six-figure household income to afford a median-priced home in their state.
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