COLUMBUS, Ohio — Major changes that will impact the real estate industry and how agents get paid are going into effect this weekend.
The new rules, which go into effect nationally on Saturday, apply to brokers and agents representing clients looking to buy or sell a home advertised on a multiple listing service, or MLS, affiliated with the NAR.
Sellers have traditionally paid 5-6% to an agent after selling their home. Now, realtors will negotiate compensation with their clients.
The changes are a result of a $418 million settlement between federal regulators and the National Association of Realtors, announced in March, that eliminated the traditional rules on commission.
Rob Riddle, president of Thomas Riddle Real Estate Group in New Albany, said his team is ready for the change.
He expects the changes will lead to more transparency between buyers and their realtors.
“It is to help the buyer understand who is representing them, what that agent's duties are, their compensation. No different than the conversation we have with our sellers currently,” he said.
Riddle expects that sellers will often choose to cover the cost of the buyer’s agent.
“I don’t think buyers are going to be pressed by this need to come up with more money out of pocket. I think sellers of those homes understand the strain on the buyer to just come up with a down payment. I don’t think they are going to want to put further strain on them and make it harder for them to buy their home by not offering to cooperate with a buyer broker,” he said.
Stephanie Eisnaugle, who was touring an open house on Thursday, said she is fine with the changes.
“It is worth it,” she said.
As competitive as the region’s real estate market can be, she appreciates the help when a new house goes on the market.
“You have to get in immediately if you even want a chance at it because there are dozens of other people doing the exact same thing at the same time so you have to jump on it as soon as the opportunity comes and make decisions very quickly,” Eisnaugle said.
Riddle said he is not expecting the region’s real estate market to slow down any time soon.
“It is a tough market for buyers. It is great if you are a seller but there are opportunities for buyers and I think there are a lot of efforts at the statehouse and among builders in various communities to try to make housing more accessible but I think if you are working with a great professional who can represent your interest, you will have success,” Riddle said.