Home buyers will now have to sign a form before viewing houses, indicating how much they’ll pay the agent
Home sales agents nationwide have begun adopting new changes following the National Association of Realtors’ (NAR) $418 million antitrust settlement in a Missouri case, which also potentially ended the standard 5%-6% commission home sellers have traditionally paid.
Before the lawsuit, for years, home sellers usually paid a fee of up to 6%, which was split between the seller’s and the buyer’s agents.
What are the changes?
Starting August 17, people buying homes will need to sign a form before viewing houses, indicating how much they’ll pay the agent. This shift could lower commission fees that sellers pay, as sellers may only need to cover their own agent’s fee, potentially saving money.
Industry experts say home buyers paying fees could lower overall commissions, with some agents accepting as little as 1% or a flat charge.
At the same time, buyers should be cautious when signing contracts and avoid hidden fees and unfair terms. Experts advise seeking clear termination rights and avoiding dual agency, where one agent represents both buyer and seller.
While some agents might ask buyers to pay 2.5%-3%, experts suggest considering a flat fee or hourly rate instead.
Additionally, those who recently sold a home might get a small payout from the NAR settlement if they apply for it by May 2025.