TULSA, Okla. — A recent settlement by the National Association of Realtors could make the dream of home ownership tougher.
The National Association of Realtors settled multiple lawsuits across the country, for more than $400 million. It changes the fee-structure of the real estate business. Typically, the seller would pay the entire commission of the realtors. Usually, a 6% rate, with 3% going to their own realtor, and 3% going to the buyer's retailer.
Now, the buyer will have to pay their own realtor.
2 News caught up with Avery Joy, a Brookside Neighbor who lives in a paid-off home.
"Well, I can, thank my ex-husband," Avery said.
When Avery divorced her husband, she got the house. No questions asked. He bought it, and wrote the checks. Now it is her own to enjoy and maintain.
"It is. It is tough," to buy a home, Avery said, "I couldn’t have done it myself it it hadn’t been a gift from my ex-husband."
It was tough then and it’s tough now. According to Rocket Mortgage, home prices have shot up 28% since the pandemic. Now, the settlement is driving up the cost even more.
AJ Lang, with Canopy Realty, offered his perspective to 2 News.
"It’s huge in how it’s going to impact buyers," Lang said.
His job could soon be changing. Traditionally, realtors representing buyers would bring their clients to multiple homes, and count on the commission once the buyer picks a home. Now, realtors will enter into an up-front agreement, on compensation. Forcing them to prove their worth before the house-hunting begins.
Lang says this will most impact low-income buyers. They will have to increase their budget by about 3% when purchasing a home. In order to purchase a $100,000 home, they would need about $7,000 for down payments and initial fees. Now, they should budget about $10,000 to pay a realtor. If that is not in the cards, buyers will be forced to represent themselves.
"It’s a people business. We just happen to sell homes," Lang said.
He sees this as a win for realtors, and sellers.
"This is actually something we’ve been trying to push for, a little bit, on the front end," Lang said, "Because now, buyer brokers will have to have a written agreement with that buyer prior to touring homes."
Avery counts herself lucky that she's settled in her Brookside home.
"I think I’m not moving," Avery said.
The case is still moving through the court system, but if all is finalized, these new regulations would go into effect as soon as July.
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