- SUMMARY
Due to significant upcoming alterations in the real estate market, realtor commissions are anticipated to decline dramatically.
This modification is noteworthy for both buyers and sellers.
The standard 6% fee paid to realtors is being eliminated, altering the traditional fee structure.
As part of the settlement, sellers will no longer be obligated to pay both their broker and the buyer’s broker.
Additionally, the National Association of Realtors (NAR) will pay $420 million to resolve claims that its fees inflated home prices.
This alteration could result in a 50% reduction in brokerage costs, potentially saving buyers and sellers thousands of dollars.
For instance, if you sell a $400,000 property today, you would pay your broker $24,000 in fees, which are passed on to the buyer.
However, under the new guidelines, your broker fee could be reduced by half, resulting in a fee of $112,000.
This modification is a significant shift in the real estate market.
A federal court is expected to ratify the agreement in the following weeks, and the reduction in brokerage fees is projected to take effect by mid-July.
This change will likely impact buyers and sellers significantly.
- Key Takeaways
Elimination of Traditional Fee Structure
The standard 6% fee paid to realtors is being eliminated, which means sellers will no longer be obligated to pay both their broker and the buyer’s broker.
Potential Savings for Buyers and Sellers
This alteration could result in a 50% reduction in brokerage costs, potentially saving buyers and sellers thousands of dollars.
Shift in the Real Estate Market
This modification is a significant shift in the real estate market and is expected to take effect by mid-July, likely impacting buyers and sellers significantly.