What's Happening?
Recent changes in real estate commission rules, following a 2024 settlement by the National Association of Realtors, have altered how commissions are disclosed, negotiated, and paid. Traditionally, home
sellers paid commissions for both their listing agent and the buyer’s agent. Under the new rules, buyers are now responsible for compensating their own agents unless otherwise negotiated. This change aims to increase transparency and flexibility in real estate transactions, affecting how buyers and sellers approach commission negotiations.
Why It's Important?
The shift in real estate commission responsibilities represents a significant change in the housing market, potentially affecting the cost dynamics for homebuyers and sellers. Buyers may face higher upfront costs, influencing their purchasing decisions and negotiations. For sellers, the change could impact how they price their homes and negotiate with buyers. This development reflects broader trends towards transparency and consumer empowerment in real estate transactions, with potential implications for market behavior and agent practices.
