Lincoln Realtor says commission changes will lead to ‘substantial’ cost increases for home buyers

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By journalsofus.com


Lincoln, Neb. (KLKN) – A settlement in a federal court case will change the way Realtors are paid and could make buying a home more expensive.

Right now, every time a home is sold, a commission is paid to the seller’s agent, who decides how much to pay the buyer’s agent.

That system sparked federal lawsuits, with critics saying commissions were excessive and unfairly advantaged seller’s agents over buyer’s agents.

So the National Association of Realtors agreed to a compromise. If it is approved, the seller’s agent will not have to pay commission to the buyer’s agent.

“Really, it’s going to bring a lot more transparency on who’s getting paid what,” said Matt Mick, a Realtor with Lincoln Select Real Estate.

The goal of the agreement is to make buying and selling a home cheaper and to give the customer more say in negotiations.

But Mick thinks it could have the opposite effect on first-time home buyers.

“Buyers’ agents will have a discussion with their client and say, ‘Hey, now you have to pay for my service,'” he said. “And that service is going to add a lot of cost to home buyers. Some home buyers do not have the money to do this. Many people have enough money to buy a home, so they have to save for a long time.

And Mick said he wouldn’t be surprised if some agents left the business because of it.

The agreement still needs to be approved by a federal judge.

If so, the change will take effect in July.



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