Changes could be coming to fees related to home buying process
CHARLOTTE, N.C. (QUEEN CITY NEWS) — A long-held policy in the home-buying industry could be going away, impacting how real estate agents are paid.
The National Association of Realtors reached an agreement last week that’s changing the standard on agent commissions. As part of the settlement, NAR has agreed to pay $418 million to some home-sellers who claim they paid inflated commissions.
“I am pretty sure that there is going to be additional details,” said Matt Stone, Realtor and owner of Matt Stone Real Estate. “I know that our local (multiple listing service) is removing that comp field for buyers’ agents in July.”
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For decades, when selling a home, sellers would agree on a commission fee. In North Carolina, the average fee ranged from 5% to 6%. That fee is then split between the buyer’s and seller’s agents.
If the settlement agreement is approved by the federal court, standard commissions would become negotiable.
While some states are expected to be impacted more than others, Stone says he does not expect the impact to be that drastic across North Carolina.
“In states like New York or Florida, you can literally walk into a home and be under the assumption that an agent is representing you — they are not representing you and they are getting both sides of the fee,” he said. “So, you are noticing 20-something states right now scrambling to adopt those buyer agent laws or contracts and making those mandatory for their members. So, North Carolina in that regard, has been long ahead of the curve that has existed for gosh probably close for a decade as far as I am aware.”
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What he does expect to change is how potential sellers and agents do business with each other. Stone expects discussions about buyer’s fees to take place immediately.
“In my estimation, if you want one of the 8,000 Charlotte-area real estate agents to show your home, you are going to have to offer some sort of compensation or to bring all of those agents in the door and I believe that will be driven on market principals,” he said.
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