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Good news for Americans wanting to sell their homes or buy a new one - no more 6% commission. [This is not good news for realtors.]

"For decades, Americans have paid a standard commission of around 6% when selling a home, split between the seller’s broker and the buyer’s broker. ... After the [recent antitrust] settlement [against NAR], those commissions will be fully competitive, meaning brokers can advertise their rates to prospective sellers, and people can shop around for bargains.

Real estate commissions are expected to fall between 25% and 50% because of the new rules, according to TD Cowen Insights."

If you google "Flat fee MLS" for your state, you're likely to see brokers like Houzeo offering a flat fee as low as $395 to sell your house. I'm not endorsing them, BTW,

Looks like the expenses and processes related to buying or selling a house in the US are about to change dramatically.

https://www.cnn.com/2024/03/18/investing/nar-realt...

I don't think things will change that much, at least not for a while. Sometimes things don't go the way people hope. I do think it was crazy that if prices went from $400K to $600K all of a sudden agents got a 50% raise. Maybe a 4% will be more normal. Or it is shared equally between buyer and seller.

I don't think things will change that much....

I tend to agree, at least for the consumer who sells or buys a house because he's relocating pursuant to a job change or retirement or the like. I never worried about the commission percentage so long as it wasn't out of line with "common practice," which seemed small to me compared to what I was laying out for the house purchase price. It also was a one-off payment; it was the monthly mortgage payment, and at one point the escrow payment added onto the mortgage payment, that concerned me.

Of course, the commission percentage will matter to folks who buy and sell real estate for a living. For them, that commission percentage cuts a significant fraction of their profit, and it adds up pretty quickly.

Eric Hines

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