Posted on 03/18/2024 8:40:46 AM PDT by where's_the_Outrage?
The powerful National Association of Realtors last week agreed to settle a big lawsuit and change the way real estate agents get paid — from a standard commission to something truly negotiable.
Why it matters: The deal could open up a tightly controlled market to genuine competition, and create opportunities for new players and business models in a relatively old-fashioned world.
It could do for real estate what the internet did for stock trading — bring down broker fees.
The impact: That'll likely mean lower costs for sellers, who brought the lawsuit as a class action. The impact on buyers is more complicated.
How it works now: Sellers pay a 5%-6% commission on the sale price of their home.
Typically, the seller's agent and buyer's agent split the commission.
It effectively means the buyer's agent is working for the seller — a conflict of interest. (Agents, of course, dispute this characterization and say their reputations depend on them doing a good job for buyers.)
Under NAR rules sellers are required to advertise the buyer agent commission on the Multiple Listing Service, the database where real estate agents put homes for sale.
(Excerpt) Read more at msn.com ...
Maybe, maybe not. If it sold at the higher price, it was worth it to some people.
Maybe the seller is in no particular rush to relocate and their main goal is to maximize price.
Other people need speed because they have to relocate for a new job etc.
A retired geezer maybe has time to spare and is less interested in speed that maximizing price.
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