09/06/2024
As some of you may be aware, a class action lawsuit was brought against the NAR w/r/t realtor commissions.
The basis for the lawsuit was essentially that they didn’t feel sellers should have to pay the buyers agent their commission. I can understand the thought behind this but the problem is that it’s not practical.
Most buyers aren’t going to have the funds to put down a down payment, pay closing costs AND pay their agent. He’s just not realistic in most cases.
The news is portraying this as a great time to sell because now you can save money. That’s wrong. You aren’t likely to save money. You are still likely going to have to pay the buyers agent’s commission. You are going to have to do this because if you aren’t willing to pay the buyers agent, they aren’t going to waste their time showing a house if they can’t make anything to do it.
They are also saying that the commission is negotiable. But here’s a little secret for you…it’s always been negotiable!! It was on the contract. The rates are relatively standard and most of the time, 5% is what is charged but that number still gets negotiated frequently, especially with more expensive homes.
So, really all this lawsuit did was line the pockets of the attorneys(yes the same trying to tell people what they should make..bet they would hate it if we did the same to them) and make the process a little more difficult with even more unnecessary paperwork.
Make sure when you go to sell your home, your agent explains all of this to you. It’s new to everyone, so we are all just kind of figuring it out as we go but the biggest thing is, if you are selling, go into the process assuming you are still paying out both sides.
