N
ew rules governing home sales have taken effect following a $418 million settlement in an antitrust lawsuit against the National Association of Realtors (NAR). The NAR agreed to settle with a federal jury's finding that it and several large real-estate brokerages conspired to artificially inflate agent commissions. Prior to the settlement, the NAR's multiple listing service (MLS) facilitated compensation rates for both buyer's and seller's agents.

    As of August 17, commission rates are no longer listed on the MLS, giving home sellers more control over how much they pay their agents. "Now, the buyer chooses how much the buyer's agent makes, the sellers choose how much the seller's agents make," said Glenn Kelman, CEO of Redfin. This shift is expected to create a more competitive market.

    Real estate agents and consumers may experience temporary confusion as they adjust to the new rules. However, experts believe that agents will adapt quickly, and the market will remain unaffected. Homebuyers may notice inconsistencies in responses from buyer's agents due to varying instructions from their brokerage firms.

    On the listing side, agents are educating sellers on the benefits of offering commission to buyer's agents, even if it's not mandatory. This can create more competition for agents showing properties, potentially increasing sales prices. Buyer-broker agreements, which specify terms between an agent and a homebuyer, will also be affected by the new rules.

    Buyers must become familiar with these forms and ask questions about their language and terms to ensure they understand their responsibilities regarding commission payments.