Lowcountry Realtors Respond to Proposed National Real Estate Settlement
Realtors in Lowcountry are responding to a proposed multi-million-dollar real estate settlement with the National Association of Realtors. Some agents believe that the resolution may not significantly impact the average real estate agent’s practice. However, changes to how potential homebuyers seek representation could result in higher commission fees.
Lee Allen, managing broker at Corcoran HM Properties, explains that a buyer’s agent usually receives their commission percentage from the home seller. However, if the settlement is approved, this practice may cease. The Multiple Listing Service (MLS), the primary database that agents use to list and search for properties, will no longer display the agent’s potential income from a sale. This change could result in buyers paying more in commission fees.
Implications for Home Buyers
Drew Grossklaus, broker-in-charge for William Means Real Estate, sees some positive aspects in these proposed changes. He believes that it will encourage home buyers to have better awareness and understanding of the fees associated with real estate services.
While these new changes may provide clarity, Grossklaus also expresses concern for those who might struggle to afford the added costs, particularly first-time home buyers or those without sufficient upfront money. He fears that the increased costs might discourage these buyers from seeking representation when purchasing a property.
Dirk Zeller, CEO of Real Estate Champions, holds similar concerns, pointing out that these changes could disproportionately affect minority buyers and Veterans Affairs (VA) beneficiaries. According to Zeller, these groups, who typically rely on federally backed mortgages, could face challenges in paying for representation fees.
The Role of Real Estate Agents
While hiring an agent is not a legal requirement, many industry professionals highly recommend it. Allen asserts that first-time home buyers, in particular, could benefit from an agent’s assistance with various aspects of a home purchase, such as verifying school districts or floodplain conditions.
Grossklaus agrees, adding that agents can help prevent clients from overpaying for a property or running into inspection issues. He insists on the importance of clear communication between buyers, sellers, and agents regarding payments and expectations to ensure smooth transactions.
Looking Ahead
Despite the potential disruptions this settlement could bring, Allen states that the real estate market continues to grow, with home sales up by 11% and prices increasing by 6% year on year. While the industry’s future may seem uncertain pending the judge’s decision, Allen is optimistic that professional agents will always be in demand.
Possible Changes
The National Association of Realtors has already paid $418 million to settle with a group of sellers in a lawsuit. This proposed settlement now awaits a judge’s verdict, which is expected by July at the earliest.
Anticipating the Impacts
The outcome of the settlement could potentially reshape standard real estate practices, introducing significant changes for agents, buyers, and sellers alike. As the real estate industry waits for the decision, the focus is on preparing for any possible impacts and ensuring that the home buying process remains accessible and fair for all parties involved.
