MAINE, USA — Earlier this month, the National Association of Realtors (NAR) agreed to a landmark settlement. If approved, it would change the way real estate brokers get commission on homes they buy and sell.
"As part of the settlement, [the NAR] agreed to change the rules on how real estate agents are paid," New York Times Real Estate Reporter Debra Kamin said. "Those rule changes are going to significantly effect the housing market and how you and I sell and buy homes moving forward."
Traditionally, most selling agents charge a commission of five to six percent of a home sale and splitting it with the buyer’s agent. The proposed settlement would change this.
"If you’re selling a home, your agent is no longer going to be obligated to make an offer of commission to the buyer’s agent," Kamin said. "As a result, there's going to be more competition in the market, so commission are likely going to come down."
As a result, she said this could also so the same to home prices.
But President of Maine Association of Realtors Paul McKee said the settlement could cost some people more money in the long run.
"It sounds like we’re going backwards with it," McKee told NEWS CENTER Maine. "The buyers will have to come up maybe with more funds than anticipated in order to be represented."