The American real estate world will see big changes starting August 17th. New rules will disrupt how real estate agents are paid. They come as part of a $418 million settlement with the National Association of Realtors to resolve allegations that the industry conspired to keep real estate commissions artificially high.
Clever Real Estate Editor-in-Chief Steve Nicastro joins Wealth! to provide insight into the new rules introduced in the real estate world and what home buyers and investors should consider going forward.
Nicastro points out the two biggest benefits of the rules: “First, these changes mean that listing agents can no longer advertise buyer’s agent fees on the Multiple Listing Service. So previously you would have entered that information in your listing agreement with your listing agent. And that would go on the Multiple Listing Service And second, buyer agency agreements are now mandatory, so when they meet with an agent, they must get a signed agreement before looking at homes in person agents.”
“The impact this is going to have, it’s just going to make negotiations a little bit more complicated, the possibility that … buyers have to pay their own agents kind of changes the dynamics of the whole situation. But the bottom line is, for sellers, it’s still the same thing,” Nicastro said.
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This post was written by Nicholas Jacobino