The experience of buying or selling a home is now a bit different than it was in the past. A recent National Association of REALTORS® class action settlement agreement has laid out new rules that have changed how brokers and agents are paid (kind of). Sellers have a choice to compensate Buyer’s agents, or not.

What does this mean for the Seller who chooses Not to pay a Buyers agents commission, agents with Buyer will likely avoid showing the listing and marketing will suffer.

What does this mean to the Seller willing to pay a commission to the Buyer’s agent, very little I suspect. Agents are writing offers and asking for compensation as they always have, and the cost is generally built into the sales price (price goes up).

Another change: Buyers are now required to sign a compensation agreement with an agent BEFORE viewing any property. This document will clarify how the Buyers agent will be compensated. What does this mean to Buyers, we’ll see. I imagine many Buyers’ agents will agree to represent Buyers for a fee to be negotiated with the Seller (business as usual). Of course, the Buyer might decide to pay the agent directly, unpopular but possible. The Buyer might go directly to the listing agent, but that leaves them without representation (not good).

Will all this affect local home prices? In short, no. Sellers want to sell for the highest price they can get, it’s human nature. Unsurprisingly, Buyers want to pay as little as possible… so we’ll see.