See what the new commission structures mean for buyers and sellers.
Let’s discuss the upcoming changes to real estate commission structures set to take effect in August. This significant shift, stemming from a recent lawsuit settlement, will see buyers, rather than sellers, paying buyer agent real estate commissions directly. The adjustment means that while buyers can still ask sellers for financial assistance to cover these costs, the traditional method of sellers paying commissions via MLS listings will no longer be the norm.
“This new process might not reduce the financial burden on buyers as much as redistribute it.”
This new process might not reduce the financial burden on buyers as much as redistribute it. Buyers are likely to request sellers cover the commission through their offers, essentially maintaining the status quo but with a different flow of payments. The real impact might be minimal, likening it to “robbing Peter to pay Paul” because the overall costs remain unchanged.
Moreover, some predict a potential mass departure from the real estate industry, estimating that 500,000 to 600,000 agents might leave within the next 24 months. This trend could be due to the new pressures and reduced transaction volumes, disproportionately affecting part-time and inexperienced agents. As a result, the industry might see a concentration of more experienced and dedicated professionals, potentially raising the standard of service.
If you have any questions about how these changes might affect the buying or selling plans, feel free to contact me!
