New regulations will soon impact real estate transactions. Buyers will now have the option to pay their own agents' commission instead of the seller being responsible for both commissions. This is expected to increase competition and lower commission rates. While this may initially burden buyers with upfront costs, it could ultimately save them money overall and give them more options for representation.
The National Association of Realtors agreed to pay $480 million because some claimed that home sellers were unknowingly paying commissions for buyers' agents. A real estate expert argues that sellers are not paying extra because the commission fee is negotiated between the seller and their agent. However, eliminating the sharing of commissions may reduce buyer representation and discourage agents from providing essential services. This settlement could harm first-time home buyers who rely on guidance and advocacy from their agents during complex real estate transactions.
