Biggest Shakeup In A Century Set To Hit Real Estate Agents

Realtors across the U.S. are bracing for a seismic shift in the way they do business.

Some agents predict the rules will pave the way for new business models and potentially drive many full-service realtors out of the industry.

New rules that will overhaul the way realtors are paid to help people buy and sell their homes were rolled out, Samantha Delouya reported for CNN.

The changes eliminate informal rules that upheld the industry’s traditional payment structure, where home sellers were typically responsible for paying a 5% or 6% commission, usually split between their agent and the agent representing the buyer.

They are part of a $418 million settlement announced in March by the powerful trade group the National Association of Realtors (NAR).

In the months since the settlement was announced, realtors across the country have been preparing for the change, attending trainings, and studying the details of new contracts they must sign with prospective homebuyers.

Some agents predict the rules will pave the way for new business models and potentially drive many full-service realtors out of the industry, while others are more optimistic about the impending changes.

“This is a grand social experiment in an industry at scale,” said Leo Pareja, CEO of eXp Realty, one of the largest real estate brokerages in the U.S. “I’m preparing my agents for what I call the ‘messy middle.’ I fully expect a lot of confusion.”