SAN FRANCISCO – New rules that took effect Saturday are changing the way people buy and sell their homes. The National Association of Realtors’ settlement in an antitrust case changes how buyers’ agents are paid.
For San Francisco home buyer Zane Williamson, the first question he asks at every open house is who pays his agent’s commission.
“We’ve been asking in advance over the last few days so you have an idea,” Williamson said.
Since April he has been attending viewings and submitting offers.
“I made a few offers. I was close. I was within $5,000 on one (house) recently,” Williamson recalled.
Before Saturdays, sellers often paid both the seller and the buyer a broker’s commission, usually between 5 and 6 percent, and the listing was on the Multiple Listing Service (MLS) website.
The new rules allow buyers to negotiate how much they pay their agents.
“This is new for the buyer because now we have to have them sign a buyer-broker agreement saying, ‘Hey, this is my fee,'” says Barbara Clemons, a real estate agent for 15 years and current president of the Bay East Association of Realtors.
Clemons said many sellers still offer to cover the buyer’s agent’s commission to make their homes more attractive, but sellers can no longer advertise that on the MLS.
“Commissions are no longer included in the MLS, so how do we know how much the seller is asking for, if they’re even offering anything? So we have to pick up the phone, contact the agent and ask, ‘What is your seller offering in compensation?'” Clemons said.
Industry experts said it was unclear whether the changes would lead to a reduction in property prices.
“That’s the crystal ball question that everyone is asking right now. And my crystal ball is broken on that one. It’s really too early to tell,” said Tricia Thomas, CEO of the Bay East Association of Realtors.
Williamson said that while the process has made the home buying process a little more complicated and requires more documents to be signed, it has not changed his attitude toward buying his dream home.
“We’re just going to let it go. It’s not going to stop me. I’ll find a house soon. It’s going to happen,” Williamson said.
Da Lin
