New Real Estate Commission Rules
The recent changes to real estate commission rules, which took effect August 17, 2024, significantly alter how commissions are structured in real estate transactions. Historically, home sellers were required to pay commissions for both their listing agents and the buyer’s agents, typically resulting in total commission rates of around 5-6%. However, due to a recent settlement involving the National Association of Realtors (NAR), this requirement has been removed, allowing for more flexibility and competition in commission negotiations.
Key changes include:
Overall, the reforms aim to make real estate transactions more transparent and consumer-friendly but could introduce new challenges for both buyers and agents in navigating commission negotiations.
In California, the compensation field has been removed from the MLS. A new field labeled Seller Consider Concessions is now available. If you have an active listing, you may want to modify your listing in the MLS. The new field can be used to advertise if concessions are offered, but specific dollar amounts or percentages are not allowed.
Santa Barbara Independent article on how these new rules might impact Santa Barbara Real Estate
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