Changes could be made to buying and selling homes
STARKVILLE/COLUMBUS Miss (WCBI) – Next week the experience of buying or selling a home is going to be different.
The National Association of Realtors agreed to new commission rules as part of a lawsuit settlement.
Buyers will need to sign contracts and agree on terms with their agents before moving forward with a purchase.
“It was a lack of transparency and disclosure on commission payments to the real estate industry. The state of Mississippi performed very well, but other parts of the country had problems with full disclosure,” said Doris Hardy, Broker/owner of Century 21 Doris Hardy & Associates.
Mississippi Magnolia Realtor Dale Connor said it is something that future homeowners should be aware of
“One of the big things that consumers are going to know, especially buyers is that you will not be able to call an agent to get an appointment to go look at a house, now we have to sit down and have a meeting or a phone call, to establish agency,” said Connor.
Listing agents also can no longer post buyer-side commissions on Multiple Listing Services (MLS).
“Financially, we are no longer able to disclose the split that we offer to an agent that brings us a buyer,” said Hardy.
Connor said all of the new rules are intended to benefit both buyers and sellers.
“It is going to be very beneficial, that is an important thing that everyone needs to get in their minds now. This is positive, and it is all about transparency in our profession and in the real estate market for consumers. This is making everything more transparent,” said Connor.
Correction: In home buying transactions there is not a set price for how much a realtor is paid, that is negotiated.
However, the industry standard is in the 4-7% range.
Sellers can but are not required to pay a buyer’s agent commissions.
The new rules come from a lawsuit settlement involving the National Association of Realtors.
We regret our error and were happy to provide more clarity.
