Presidents of North Texas realtors groups say settlement proposal likely not a bridge to cheaper homes
NORTH TEXAS — The cheers and confetti associated with a $418 million settlement between home sellers and the National Association of Realtors have left many in Texas wondering about the impact.
Lauding the removal of the 5-6 percent standard commission starts the pondering. Metro Tex President Ashley Gentry said her members are concerned, but they will get paid for their work.
"There have been industry shakeups, changes, disruptions since we've gotten the business," Gentry said.
The mother and businesswoman said she started working for her mother when she was 15 years old. Real estate is a family business with Cheri Feurerbacher at the helm. Her stepfather is a lender, her husband is a realtor, and her daughter is helping, too.
Some of Gentry's members, she said, face the fear of change and simply fear.
One of the most significant changes in the proposed settlement is the visible compensation on multiple listing services, frequently called an MLS.
"So as it stands now, we have an offer of unilateral compensation that is in the multiple listing service," Gentry said.
The MLS is a real estate tool. It helps in the process of buying and selling homes. The technology also levels the field between big and small brokerages. Removing the pay field is on the table.
"It was something that the listing broker and the seller agreed to as a part of the listing agreement," Gentry said. "They were putting in there what the listing broker was willing to offer or share in compensating a cooperative broker."
Gentry said if the settlement gets the nod, the offer of unilateral compensation could move forward. She said the fields they filled in payments were places where one dollar or even zero could be entered.
"I just need to emphasize that commissions have never been fixed," Jamuna Thill said. "They have always been negotiable."
Thill is the president of Collin County Area Realtors. In conjunction with the North Texas Realtors Foundation, the group is holding a free homeownership fair in April to answer questions about buying and selling homes.
According to Thill, the settlement sounds more dramatic than it is. She said everyone will continue to conduct business through negotiations and signed agreements.
According to research from the Texas Real Estate Research Center, the housing market remains robust and competitive. Due to the settlement, supply and demand may push housing prices up rather than down.
Thill speculated one possible impact of the settlement could be passing the buck on to consumers.
"It may affect affordability because now we may be looking at the buyer having to compensate his agent," she said.
