Realtor Commission changes: What you need to know

SAN ANGELO, Texas ( Concho Valley Homepage ) — The new rules for real estate agents, now in effect, will bring about significant changes in how home buyers and sellers engage with their agents.

These rules are the result of a settlement from a large anti-trust lawsuit alleging that home sellers were forced to pay inflated commissions to agents. The biggest impact of the new rules will be on home buyers.

According to local Concho Valley realtor Aaron Nelson, the new rules will effectively change how realtors and buyers interact. Multiple listing services can no longer include buyer agent commissions in the listing. This means that realtors will now have to initiate conversations with each other about commissions, a practice similar to what commercial realtors have been doing for decades.

Nelson believes these changes will lead to more in-depth conversations between clients and agents. Under the new rules, home buyers will be required to set up a consultation and sign a buyer representation agreement before they can view any homes.

First-time home buyers are expected to be significantly impacted by these changes. If sellers choose not to offer compensation, it could limit the pool of available buyers. In such cases, the buyer might be required to pay the buyer/broker commission, which would disproportionately affect first-time home buyers.

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