Realtor rule rewrite raises interesting possibilities

INDIANAPOLIS (WISH) — New rules for real estate agents are now in place, implemented in a mid-August move that has been years in the making.

Despite the long lead-up, the full impact may take years to fully understand, according to Business Insider’s James Rodriguez.

“It’s a pretty big change that, I think, will add a lot more formality to what in the past has been an almost surprisingly casual relationship,” he said.

Rodriguez has followed the issue closely. He joined News 8 at Daybreak to give insight into how much of an impact the changes may truly have.

“These new rules are going to require the buyer’s agents to sign an agreement with the buyer before they even so much as tour the home that says, ‘I expect to be paid this much, and if the seller is not offering that commission, you might end up on the hook for it.'”

When asked if headlines like “ New Realtor Rules Will End Casual House Hunting ” are hyperbole or reality, Rodriguez leaned toward the latter.

“You’re still able to walk up to an open house, and you can still see that home without an agent. But if you do want to see that home with somebody on your side, as the buyer … you are going to have to sign some sort of agreement.”

Rodriguez raises a few intriguing scenarios in his article, including the possibility of real estate agents charging prospective buyers by the hour, rather than relying on a commission that may never come.

“I think that is going to be a potential model. How popular it becomes, I’m not entirely sure. But I think you’re going to see all kinds of different models out there as people try to figure out, ‘OK, how much value am I actually getting out of this agent?’ And for the agent as well, ‘How much return am I getting for my services?'”

Rodriguez also expects more buyers to try to “go it alone,” instead of working with a real estate agent … up to a point.

“I do think you are going to see more people doing that on the whole. Though, I think the majority of people do want somebody. They do want a human being to walk them through the process. It is such a complicated transaction that people only do maybe a handful of times in their lives, and so I think a lot of people still will seek out that representation.”