Many of us were surprised to read about a change to the real estate industry that may have far-reaching implications for future home buyers.
The National Association of Realtors, representing over 1.5 million real estate agents, has agreed to a reconfiguration of their traditionally maintained fee structure. Realtors were paid around 5 to 6 percent of the total sale price for many decades.1
However, this restructuring will likely align fees more accurately with real estate agents’ services. Some experts speculate that we could see a “decoupling” of commissions, traditionally shared by the seller and the buyer’s agent, leading to decreased prices over time.1
It’s also possible that agents representing buyers may seek compensation directly from their clients, creating an entirely new dynamic within the industry.
We hope this information provides some insight. At the same time, it’s crucial to remember that every real estate transaction is unique, and this new fee structure could bring both opportunities and challenges.
Whether you are a realtor affected by this changing commission structure, or a home buyer needing more details, we are here as your advisor. Let us know how we can help.
Looking for more information on financial wellness, read our blog post from last month – Financial Wellness on Your Path to Retirement.
| 1. Abcnews.go.com, Mar 18, 2024. “Rules that helped set real estate agent commissions changing. What you need to know.” |
