Real estate agencies hope to aid future homebuyers as settlement changes how agents get paid

ROCHESTER, N.Y. (WROC) — Two major changes to the real estate industry that potentially redirect how agents get paid began Saturday. This comes after a recent settlement in an antitrust lawsuit impacting real estate agent compensation.

Prior to this settlement, a real estate agent representing a home seller would share a commission, normally between five to six percent of the sale price of a property, with the agent representing the homebuyer.

The settlement now requires potential homebuyers who want representation by a real estate agent, to sign a compensation agreement with said agent before they can step foot into a home.

The main change here is who takes on the cost of the bill for real estate agents — which can be costly to homeowners, especially with the market changing so much in the past year. This also makes it difficult for potential homebuyers to get a property because of competition.

Also under this settlement, a broker who represents a seller does not have to include a blanket offer of compensation to a buyer’s agent when the property is advertised on multiple listings services.

Officials said the intention behind this, is to eliminate any motivation for a buyer’s agent to direct their client away from property listings that do not feature a cooperative compensation agreement.

Real estate companies are already adapting to the new rules, including Howard Hanna. In an effort to not scare buyers that will have to pay their compensation, officials with the company said its introducing options directed toward all buyers, especially those with limited funds.

With the ‘Buy & Borrow’ bundle, any potential buyer who uses Howard Hanna would receive up to $10,000 towards whatever financial assistance they need, to be able to have a cushion if they have to pay their buyer’s agent representation.

“You have to use a trusted advisor that you know when you hire a buyer’s agent, you have to use somebody that that you trust and that has the experience to get you the home you want at the price you want to pay. That’s the bottom line. You have to be able to have someone that you can rely on. Because now the buyer’s agent has a fiduciary responsibility to the buyer,” Howard Hanna Regional Vice President Cathy Bianchi told News 8.

For more information on the “Buy & Borrow Bundle” click here .

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