April 2024 » thefivestar.com
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on buyers if they are responsible for
compensating their own agents directly,
at a time when home prices are high and
elevated mortgage rates make borrowing
expensive. Some buyers might have to
lower their target price in their home
search to account for this newly added
expense, but even if home prices were to
fall in the future, buyers' costs are likely
to rise by a similar amount if they are
having to compensate agents directly. It
all remains to be seen though what the
impact might be, because new business
models, mortgage financing options,
and more could give home shoppers
additional options in the future. For now,
higher mortgage rates and the low inven-
tory of homes for sale will likely have a
bigger impact on home sales and prices
this buying season."
She added, "Buyers agents play an
important role in helping home shoppers
find the right home, negotiate the terms
of the sale, and settle on a price, and buy-
ers will likely be reluctant to navigate the
financial decision of a lifetime without
their professional expertise and support.
Ultimately, if these changes bring about
greater consumer transparency, that's a
good thing."
"Ultimately, continuing to litigate
would have hurt members and their
small businesses," Wright said. "While
there could be no perfect outcome, this
agreement is the best outcome we could
achieve in the circumstances. It provides
a path forward for our industry, which
makes up nearly one fifth of the Ameri-
can economy, and NAR. For over a cen-
tury, NAR has protected and advanced
the right to real property ownership in
this country, and we remain focused on
delivering on that core mission."
On a scale of 1-10,
the National
Association of
Realtors' decision
to shift the buyer
side commission
burden from sellers
to buyers is a 10
and represents
nothing short of a
sea change."
—Toby Schifsky,
VP of Real Estate Education, Kaplan
F I V E S T A R I N S T I T U T E M E M B E R S ' I N S I G H T S
