Real Estate Commissions: What Homebuyers Need to Know
Real Estate Commissions: What Homebuyers Need to Know
In March, a significant change occurred in the real estate industry that may have potential implications for future homebuyers.
The National Association of Realtors, an organization that represents over 1.5 million real estate agents, agreed to reconfigure their traditionally maintained fee structure. For decades, realtors were paid around 5-6% of the total sale price of a property.1 However, this restructuring will likely align fees more accurately with real estate agents’ services.
Some experts speculate that we could see a “decoupling” of commissions, traditionally shared by the seller and the buyer’s agent, leading to decreased prices over time.1 It’s also possible buyer agents may begin seeking compensation directly from their clients, creating an entirely new dynamic within the industry.
I hope this information offers some insight into this change. Please remember that each real estate transaction is unique and this updated fee structure may present both opportunities and challenges ahead.
1ABC News, Mar 18, 2024. “Rules that helped set real estate agent commissions changing. What you need to know.”
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