New real estate guidelines reshape South Carolina homebuying process

MYRTLE BEACH, S.C. (WBTW)– Big changes are coming to the real estate market, both nationwide and in South Carolina after a recent settlement with the National Association of Realtors is set to transform the way homes are bought and sold.

For years, purchasing or selling a home in the state has following a traditional approach, with realtor commissions baked into the process.

But under new guidelines that go into effect on Saturday, a buyer’s agent will have to negotiate directly for their fees with sellers as commissions won’t be listed on the Multiple Listing Service.

The Coastal Carolina Association of Realtors started implementing the plan on Tuesday, giving agents more time to adjust.

Local broker Joel Barber of The Advantage Group said that while commissions have always been negotiable, the new rules will change how they are perceived.

“Instead of automatically saying, ‘Hey, I’m going to get two and a half or 3% because it’s on the MLS,’ buyer’s agents are now going to write in a compensation agreement,” Barber said. “Part of this offer will be my commission.”

Experts believe these changes will increase transparency for home buyers and sellers. While commission rates in South Carolina have never been set at a fixed percentage, the new rules are expected to lead to more negotiations between buyers, sellers, and agents.

Under the new guidelines, the traditional practice where sellers cover the buyer’s agent’s commission—typically between five and six percent of the sale price—is ending. The most significant change is that real estate commissions for buyer’s agents will no longer be listed upfront on the MLS.

“This has always been negotiable,” Barber said. “But what’s changing now is that number won’t be there anymore.”

These changes follow allegations that the NAR’s previous rules restricted competition and led to higher costs for consumers.

Nate Johnson, vice president of advocacy at the National Association of Realtors, emphasized the importance of transparency in the home-buying process.

“Investing in homeownership is one of the largest financial transactions someone can make in their life, and it can set them up for either success or failure,” Johnson said.

Going forward, commissions will be negotiated directly between buyers and their agents. Barber noted that this shift will focus on agents demonstrating their value to clients to get paid.

“It’s all about protecting our clients’ bottom line,” Barber said. “When we’re selling a property, we’re protecting their equity, and buyer’s agents will now need to show their value to their clients.”

The new rules aim to promote transparency and allow for more direct negotiation. Johnson added that the increased transparency could lead to more consumers asking questions about the services they’re receiving and the compensation their realtors are requesting.

Home sellers could benefit from not having to cover the buyer’s agent’s commission, potentially lowering their costs. Meanwhile, buyers may gain from increased transparency and the opportunity to negotiate better deals directly with their agents.

“This is just another change that we as realtors will adapt to,” Johnson said, “to create better outcomes for our consumers.”

You can learn more about the NAR settlement here .

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Savannah Denton joined News 13 in July 2023 as a reporter and producer. Savannah is from Atlanta, Georgia, and is a graduate of the University of Alabama. Follow Savannah on X, formerly Twitter, and read more of her work here .

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