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How the recent Realtor settlement could change the way Americans buy and sell homes

·1 min

A settlement announced by a real estate association could change how Americans buy and sell homes. The agreement aims to address concerns about high home prices. While commissions and negotiations will remain, there are several key changes. Agents’ compensation will not be included on local listing portals, and brokers will need to subscribe to multiple listing services. Buyers’ brokers will be required to have written agreements with their buyers. The changes are expected to reduce commissions by 25% to 50% and may lead to different brokerage services. Buyers may need to negotiate terms with their agents and enter into a buyer representation agreement. The settlement allows sellers to pay both their own agents and buyers’ agents. However, sellers will no longer be allowed to disclose commission amounts on centralized listing systems. The changes could transform the real estate business and impact agent cooperation on fees. While lower-cost models exist, traditional options may still be preferred. The new rules raise concerns about their impact on first-time and lower-income buyers. Some agents view the settlement as positive, believing it will drive commission fees down.