Beyond the Headlines: Understanding How Proposed Changes in Real Estate Commissions Will Actually Impact You as a Buyer or Seller
You’ve probably heard the news that there are changes coming in terms of how real estate commissions are paid.
This might sound exciting and like a potential game-changer for you as a home seller or buyer, with headlines proclaiming things like:
- “Real estate commissions are being slashed!”
- “Selling your house will now be less expensive!”
- “No more paying 6% to real estate agents!”
But you’re also probably not sure exactly what it all means, how it will work, or how you’ll benefit from the changes.
Unfortunately, even if you ask the most informed agents on the planet, you probably aren’t going to get many answers. It isn’t because agents don’t want to answer your questions; it’s because they don’t even know exactly how the changes are going to work.
The settlement happened seemingly overnight. There was no advance warning or discussion with agents. They found out by reading a bunch of headlines you probably saw at the same time they did.
On top of that, most of the headlines are misleading, because nobody knows exactly how things are going to play out. Any claims that the media makes that commissions will be cut in half, or any specific number of dollars will be saved by consumers, remains to be seen. The changes might reduce commissions. On the other hand, they could increase them. As with many things the government or court system touches, there’s always the possibility that it could create more issues than it solves.
But, for the time being, as much as you might want or expect your local agent to be able to give you specifics, please understand that they can’t. For starters, it’s a proposed settlement, not yet accepted by the courts, and if it’s approved, the changes won’t start until July.
to be continued
