I was informed that, this August, there will be changes made to California Real Estate. I took a look online and it all went over my head. Something about the NAR and Compensation to agents? I don’t understand any of it and would like someone to lay it out for someone who doesn’t understand Real Estate.
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The NAR was sued. This is the result.
[https://www.justice.gov/opa/press-release/file/1338606/dl](https://www.justice.gov/opa/press-release/file/1338606/dl)
Nationwide the real estate market for residential properties will change as a result of the completed and still pending lawsuits.
The old (current) system where the seller agrees at time of listing to pay both the listing agent and the buyer’s agent – on average about 6% total – will change to the seller paying only the listing agent. This leaves the buyer to either pay the buyer’s agent or be unrepresented (the more likely condition). However, the new system still allows the buyer to request that the seller pay the buyer’s agent in the offer to purchase.
Since a large percentage of buyers do not have the extra funds to pay their own agent most buyers will request that the seller pays both agencies in the offer.
How this will eventually turn out is probably largely dependent on market conditions. Sellers tend to allow more concessions is the market is over-supplied and fewer concessions if the market is under-supplied. In an under-supplied market few sellers will pay both commissions and the end result will be unrepresented buyers, and probably more lawsuits after the closing.
In a nutshell, nothing. Some paperwork and internet changes, but commissions will not change and are still just as negotiable as they are now and have always been. The end.
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