5 Ways Buying and Selling Your House Will Change
Written by
Diana Kelly Levey
Edited by
Chris Cluff
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
The National Association of Realtors (NAR) has long regulated the way homes in the U.S. are sold. Now that a new settlement was reached in March, the Realtors’ commissions will change, as will how you work with Realtors — whether you’re buying or selling a home.
The 6% commission rule on buying or selling a home has been eliminated. The seller used to have to pay the broker and a buyer’s broker. That took away a serious chunk of cash the seller could have otherwise pocketed.
Here’s how things will change for buyers and sellers starting in July 2024 and beyond.
Also see the signs it is time to sell, according to agents.
Buyers’ Brokers Will Enter Into Written Agreements With Their Buyers
If you’re the buyer, this means you won’t be able to work with multiple agents to find your perfect home. The NAR says it encourages “members to use buyer brokerage agreements that help consumers understand exactly what services and value will be provided, and for how much.”
The Buyers’ Agents Won’t See Their Potential Income
It was believed that some brokers pushed their buyers toward more expensive homes because they could earn higher commissions — and those commissions sometimes were advertised on real estate listing sites. With the new changes in effect, listing agents can’t advertise commission rates to buyers’ agents on most databases.
You Might Have More Negotiating Opportunities
If you’re selling a home, you might be able to negotiate with the real estate agent about the commission. And because the buyer’s agent’s commission is no longer part of what the seller will be paying, when you sell your house at a higher price, you’ll be taking home more of the pie.
Buyers Might Have To Pay Their Agents
Historically homebuying agents have gotten 2.5% to 3% of the purchase price. But now that homebuyers likely are going to have to pay that, they might negotiate their real estate agents down to a lower percentage. Because many buyers are already on tight budgets, having to pay their Realtor after buying a home might be a problem.
Home Prices Might Fall
If the sellers were raising their prices to compensate for what they were going to have to pay both brokers — and their Realtors were the ones leading those increase motivations — they might list their homes for lower prices. That could translate into savings for the buyer.
More From GOBankingRates
