Real Estate Commissions Coming to an End?????

By Scott Ostrode

Scott has been a licensed Realtor since 1998. In 2003 he joined Keller Williams Realty and in 2007 he formed Team Ostrode Properties. Scott grew up in Sacramento and has raised his family in the area as well.

In case you didn’t know, the real estate world is changing for the first time in decades following the National Association of Realtors lawsuit. I’ve been getting a lot of questions about these changes and what they mean for buyers and sellers. Unfortunately, the media has been giving out some misleading information. That’s why today, I will explain what real estate transactions will be like once the terms of the settlement go into effect:

Starting in August, all buyers will need to sign a buyer representation agreement with their real estate agent of choice. Up until now, sellers always needed to sign a listing agreement, but buyers never had to sign an agreement with their agent. This is changing. The buyer representation agreement will outline the expectations between you and your agent, including the type of property you’re looking for and the areas you’re interested in. It will also detail the amount of compensation the buyer’s agent will receive.

Another significant change is that the amount of buyer agent compensation will no longer be listed in the Multiple Listing Service. Previously, a buyer agent could look in the MLS to see how much commission was being offered for any particular home. However, as part of the settlement terms, this information will no longer be available in the MLS.

If you’re thinking about buying or selling a home in the next six months, the best thing you can do is give me a call at (916) 799-1662 for a quick conversation to see how these changes might impact you specifically. Understanding these new rules is crucial for making informed decisions in the current real estate market. I look forward to hearing from you!