Real estate broker weighs in on the end of commission rules
ST. PETERSBURG, Fla. — The Real Estate industry is changing. The National Association of Realtors announced on March 15 an anti-trust settlement of $418 million that’s ending rules on commissions.
Sunny Alexander is the Owner and Broker for Red Sash Reality and one of more than one million members of the NAR is ready to adapt.
“Change is good,” he said. “It’s going to be rough learning the new normal.”
Alexander has been in the industry for nearly 20 years. She started her journey in Tennessee after serving in the Army. For the last six years, she’s shown homes in Tampa Bay.
She said she’s the voice of reason for her customers and tries to guide them to the best decision.
“They either need to sell a house or they need to buy a house,” she said. “So I’m with them every step of the way, trying to solve that problem, and it’s just extremely rewarding.”
Until now, home sellers often paid about 6% of the sale price toward a fee that would be split between their own agent and the buyer’s agent.
That will no longer happen and Alexander said two changes stick out.
She said every buyer is required to sign a buyer’s agency agreement, an agreement between the potential buyer and someone like Alexander that outlines the terms of their partnership.
The second is a buyer’s co-op.
She said anytime she uses a multiple listing service, a collection of listings, she won’t know if the seller will compensate her.
“I’m going to approach it positively and it will be a positive change for me and my business and customers,” she said.
Experts are divided on exactly how much impact this will have on home buyers, who will now likely have to start paying their agents themselves.
They say if commissions become cheaper and more negotiable, then home prices could fall saving buyers money.
