New rules Saturday change how realtors get paid
SAN FRANCISCO -- New rules that went into effect on Saturday are changing how people buy and sell their homes. The National Association of Realtors' antitrust lawsuit settlement changes how buyer agents get paid.
For San Francisco home buyer Zane Williamson, the first question he asks at every open house is who's paying his agent's commission.
"We've been asking over the last few days ahead of time so you'll have an idea," Williamson said.
He's been going to open houses and submitting offers since April.
"I've put in some offers. I was close. I was within $5,000 at one (house) kind of recently," Williamson recalled.
Before Saturday, sellers would often pay both the seller and buyer agent commissions, typically between 5 and 6 percent. And it would be advertised on the Multiple Listing Service (MLS) website.
With the new rules, buyers may negotiate how much they pay their agents.
"For the buyer, this is new because now we've got to have them sign a buyer-broker agreement that would say 'Hey, this is what my fee is,'" said Barbara Clemons, a realtor for 15 years and current president of the Bay East Association of Realtors.
Clemons said many sellers continue to offer to pay the buyer agent's commission to make their homes more enticing. But sellers can no longer advertise that on the MLS.
"Commision is not in the MLS any longer. So how do we know how much the seller, if they're offering anything? So we've got to pick up the phone and contact the agent and say 'What is your seller offering in compensation,'" Clemons said.
Industry experts said it's unclear if the changes will reduce home prices.
"That's the crystal-ball question that everyone is asking right now. And my crystal ball is broken on this one. It is really too early to tell," said Tricia Thomas, CEO of the Bay East Association of Realtors.
Williamson said that, while it has made home-buying a little more complicated and there are more documents to sign, it doesn't change his outlook on buying his dream home.
"We're rolling with it. It's not going to stop me. I'm going to land a home soon. It's going to happen," Williamson said.