Potential Changes in Local Housing Market Following Realtor Settlement

A recent settlement could lead to changes in the housing market, says Gary Painter, PhD, a real estate professor at the University of Cincinnati. The National Association of Realtors has settled lawsuits over high agent commissions. They've agreed to pay $418 million to home sellers and will now allow buyers and sellers to negotiate lower commissions. Painter believes this will increase transparency in the market, benefiting both buyers and sellers.

Before, buyers and sellers could negotiate fees, but many didn't know this. The settlement will help people understand the services they need and their costs. Painter thinks this is a good step, as it will help buyers and sellers make informed decisions.

The settlement might also change the real estate industry. Companies like Homeshake, a startup that connects buyers and sellers directly, are already helping to reduce costs. Painter thinks more experienced homebuyers and sellers will use such platforms, increasing competition.

Painter also expects a change in the services provided by buyer’s and seller’s agents. These will be priced more competitively, which could lead to a market where services are priced transparently and buyers and sellers understand what they're paying for.

In conclusion, the settlement could lead to significant changes in the housing market. Increased transparency, informed choices for buyers and sellers, and potential industry changes are expected. It's unclear whether these changes will make the market more or less expensive, but they should provide more options and better information for those in real estate transactions.

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