Navigating Real Estate's Seismic Shakeup: Impact on Buyers and Sellers
Monday, 19 August 2024, 03:00
Understanding New Commission Structures
With the introduction of new rules by the National Association of Realtors (NAR), home sellers are increasingly exploring options to circumvent traditional commission structures. As Dana McMahan discovered, selling her home without a full-service realtor allowed her to retain more of her profit.
The Shift in Real Estate Transactions
- NAR's New Rules: Effective August 17, the changes aim to reshape commission negotiations.
- Eliminating Advertising Commissions: Sellers can no longer advertise the commissions they offer buyer's agents.
- Antitrust Implications: Responses to lawsuits prompted NAR to reconsider how commissions are structured.
Impacts on Buyers and Sellers
- Savings Potential: Sellers like McMahan report significant savings by using limited services.
- Buyers' Responsibilities: New rules require buyers to understand their potential commission obligations.
- Market Complexities: Higher buyer commissions could become the norm, increasing overall transaction costs.
As real estate markets continue to evolve, both buyers and sellers must navigate these new dynamics carefully.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.