Changes from a landmark settlement affecting broker commissions from America’s largest real estate trade association take effect this weekend, potentially creating a more complex and uncertain$418 million settlement, announced in March, “adds more uncertainty and unknowns to an already stressful and pressured industry,” Phil Crescenzo Jr., vice president of Nation One Mortgage’s southeast division, told FOX Business.
Deals will now require explicit agreements through a buyer agency agreement , a legal contract that defines what a buyer’s agent will earn, independent of what the seller offers. “The new rules will shift the value proposition of using a buyer’s agent. Active inventory doesn’t reflect the actual inventory available in the market,” Roberts said.
The previous structure created the impression that a buyer’s agent worked “for free,” according to Roberts.For one, if a buyer agrees to a 2.5% commission for an agent, the buyer will need to ensure he can cover that unless a matching concession from the seller is negotiated.