the realtors

Realtors settlement brings confusion, relief to Southern California’s real estate industry – Orange County Register

One thing is known for sure about a proposed settlement of a massive antitrust case against Realtors: the home selling process is about to change, and with it, how buyers and sellers compensate their agents.

Otherwise, say members of Southern California’s real estate industry, it’s too soon to decipher the impact of the $418 million deal unveiled on Friday, March 15.

Also see: Brokerage stocks tumble after Realtors agree to commission-cutting deal

Will buyers now start paying their agents directly?

Will buyers now have to sign a contract before their agent will show them any homes?

Will lenders allow buyers to roll the cost of paying agent commissions into a slightly larger mortgage?

And ultimately, will the settlement lead to smaller commissions and lower home prices?

Also see: Homebuying’s 6% commission is gone after Realtors settle lawsuit

“There’s just a lot of moving pieces that have to be settled,” said Art Carter, chief executive of the Chino Hills-based California Regional Multiple Listing Service, which covers much of Southern California. “And I’m not going to say I have my arms around every one of those moving pieces.”

In a statement announcing the settlement, the National Association of Realtors said it agreed

How major real estate changes could impact homebuyers

For decades, the standard for paying buyer and seller agents in real estate transactions has been between 5-6% of the home’s sale price, split between the two agents. This summer, that structure could change as a result of the National Association of Realtors’ recent settlement, which could see buyers and sellers become more responsible for paying their own agents rather than making the sellers cover both fees.

One real estate professional believes this is good for the marketplace, making it more transparent.

“[The] NAR agreeing to cut our commissions and sellers can’t offer a buyer agent co-broke is not true,” said RJ Long, the managing partner for Coldwell Banker Prime Properties. “[Neither] NAR nor the [multiple listing services] set commissions. Our local boards do not set commissions. Therefore, they don’t have the authority to cut the commissions, the brokers do; we have that right.”

According to Long, there isn’t a fixed percentage.

“We never got to a 6%; it’s one of the biggest misconceptions in the industry right now is that we are so fixed,” he said.

As part of a settlement announced Friday, the NAR agreed to make some policy changes in order to resolve multiple class-action lawsuits brought