- SUMMARY
The National Association of Realtors (NAR), representing over a million agents nationwide, has agreed to eliminate rules on commission rates for brokers.
This change could result in the elimination of the standard 5-6% commission fee currently paid by home sellers.
This decision stems from lawsuits alleging that NAR’s rules unfairly inflated agent commissions.
The move is expected to provide buyers and sellers with more flexibility to negotiate fees with their agents starting in July.
The change comes amid growing questions about the value agents provide in the home buying and selling process.
Some real estate experts predict that buyers may benefit significantly from the change.
With the high demand for homes and the competitive market, they anticipate that buyers locked out of the market due to high prices may now have more opportunities.
Despite the potential benefits for buyers, some real estate agents are expressing concerns.
They believe newer agents may face more challenges in entering the market due to the increased competition.
However, experienced agents, like Rick Elder, believe that the change will ultimately not affect their revenue.
It remains to be seen how this change will impact home prices.
Some experts suggest that prices may not drop significantly in the short term due to the high demand for housing.
The full impact of the NAR’s decision on the housing market and its participants will likely become more apparent in the months and years to come.
- Key Takeaways
NAR sets a new rule, eliminating standard commission rates for brokers.
The National Association of Realtors (NAR) has agreed to eliminate the standard 5-6% commission fee currently paid by home sellers.
Buyers can save more and have more negotiating power with estate agents.
This change is expected to provide buyers with more flexibility to negotiate fees with their agents.
Experienced agents think this change will not affect their income much.
Rick Elder, an experienced agent, believes that the change will ultimately not affect their revenue.