Salon.com
You may think you know a lot of home buying, but unless you’re a professional, using an agent is critical.
Significant national changes took effect this year following a winning lawsuit by Missouri homebuyers against the National Association of REALTORS® (NAR). Plaintiffs argued that agents weren’t transparent about commission. The upshot is that now agents cannot state their commission in MLS listings (but can disclose it elsewhere, like on their websites). Buyers and sellers are responsible for paying their own agents, as a flat fee or commission, rather than the previous model where the commission was paid by the seller and split between the two agents. Sellers can still pay the buyer’s agent fee in order to sweeten the deal.
The rule sent the industry into a tizzy, with the main concern that buyers, especially those who qualify for zero-down programs, won’t be willing or able to pay those commissions out of pocket.
“That might affect their ability to purchase a property, especially someone that's down payment-challenged, and that will affect what they may be able to offer for the property,” says Vince Malta, a member of the NAR Leadership Team.
Malta of the NAR says that these changes, ultimately, are not a big needle-mover for home prices, which are affected mostly by inventory and the economy.
“The biggest effect we believe is that this change is pro-consumer, puts the consumer in the driver's seat, and they're going to know upfront what their choices are in relation to compensation of an agent and moving forward.”