[Music] It's one of the largest shakeups in the Real estate industry in decades new Rules go into effect this weekend that Will change the way homes are bought and Sold across the country CBS News senior Business and Technology correspondent Jolene Kent tells us what this means for Potential home buyers buyers Sellers and Agents are all going to be feeling the Effects of this settlement starting this Weekend and the idea here is to increase Transparency after a major antitrust Lawsuit now first you're going to see a Big shift in agent commissions real Estate agents normally charge 5 to 6% Commission and they would split that now With the buyer's agent that is typically Paid by those selling the home now under This new rule buyers and sellers will Now have the opportunity to negotiate Costs with their respective agents that Means buyers May pay the commission fee To their real estate agents there are Also changes when it comes to listing a Home for sale on the MLS the multiple Listing service that's that ubiquitous Tool that helps real estate Professionals share and learn about Properties agents will no longer be Allowed to use the service to offer to Pay a commission to agents representing Potential home buyers they will also be Required to remove all broker
Compensation Fields now you might Remember why did this all happen back in March the National Association of Realtors announced that these rules were Going to be part of a landmark 418 Million million dollar settlement to end An Anti-Trust lawsuit the association Was challenged over allegedly forcing Sellers to pay up to a 6% realtor Commission in which they allegedly drove Up home prices Jo Kent joins us now so Jilling who benefits the most from these Changes it really depends on who you ask Because when it comes down to it it's All about the individual case and Negotiation here so when say for example If you like to browse open houses and You're going around you won't need a Special agreement in that case to engage With a realtor when you're just looking For homes but then if you want to see Something privately or individually and You want to get more serious you will Have to sign an agreement which would Include striking the terms of how much You might pay whether that is for a Commission for a possible purchase or Negotiate you know paying by the hour or A fee but uh according to SES you know When you are browsing you're still free To do that but then once you get more Serious and you want to get more Specific about a property or perhaps a Neighborhood that's when you have to
Engage in what these These are these Agreements have been called what are Experts telling you is this a step in The right direction for the US housing Market you know this is a move uh it was An antitrust lawsuit that resulted in a Massive historic settlement $418 million And as a result we are seeing more of a Moving Target if you will so there was a Standard of about 6% that was paid by The seller to cover both the seller and The buyer's agents right and now that Cost could be distributed if negotiated Across both parties the buyer and the Seller so looking ahead though as you Know the housing Market's been super Tight and if you look at what the Federal Reserve is expected to do we Expect to see interest rates get cut in The mid-september meeting in Washington So depending on how that goes how much Of a cut you could see a swell in Participation from both buyers and Sellers in the market and these Complicated rules certainly have a lot Of agents that I've been talking to Trying to figure it out as they go along And and buyers as well and of course Sellers wondering okay how much should I Be pricing a home now what kind of Agreements I should I be striking so There's a lot of big question marks as To how this is going to play out but Certainly expect a lot more action in
The housing market as that interest St Comes down
