Realtors in the USA are about to have their commissions cut by 30%. That’s right, the gravy train is coming to an end.
A recent court verdict found that the National Association of Realtors (NAR) and several large brokerages had artificially inflated commissions and conspired to require home sellers to pay the buyer’s agent’s commission. This verdict is still being appealed, but it’s a major blow to the real estate industry.
So what does this mean for realtors? It means they’re going to have to find new ways to make a living. They could start by actually working for their commissions. For too long, realtors have been getting away with charging exorbitant fees for doing very little.
But home buyers and sellers are finally waking up to the fact that they’re getting ripped off. They’re starting to look for ways to avoid paying real estate commissions altogether. And there are a number of ways to do this, such as using online real estate platforms or selling for sale by owner (FSBO).
So if you’re a realtor, it’s time to start brushing up on your skills. You’re going to need to be able to provide more value to your clients than just showing them houses. You’re going to need to be able to help them negotiate contracts, navigate the mortgage process, and deal with all the other hassles of buying and selling a home.
But if you’re a home buyer or seller, this is good news for you. You’re finally going to be able to save some money on real estate commissions. Just be sure to do your research and choose a realtor who is willing to work for their money.
Here are some humorous implications of a 30% cut in real estate commissions:
- It may see that Realtors will start selling houses on commission instead of consignment (lack of work towards listings).
- Real estate listings will start to include things like “free commission” and “buyer pays agent’s commission.”
- Realtors will start offering discounts to clients who pay in cash.
- There will be a rise in DIY real estate, with home buyers and sellers handling their own transactions.
- Realtors will start to moonlighting as Uber drivers and DoorDash delivery people.
Overall, a 30% cut in real estate commissions would be a major change for the industry. But it’s a change that is long overdue. Home buyers and sellers deserve to save money on these exorbitant fees.