TULSA, Okla. — The way people buy and sell homes is about to change.
A new real estate law will go into effect Aug. 17, stemming from a lawsuit out of Missouri.
When it comes to the transaction of selling a home, a seller will no longer be solely responsible for paying the buyer’s agent. That fee could now fall to the buyer.
With this being a deviation from the way things have always been done, mortgage advisor William Gomez said this will alter the industry in a number of ways.
“It was like David versus Goliath, and David won," he said. “A lot of people that don’t really know or aren’t in the business they think that this is going to help sellers, and this is going to help buyers, and lower price. I disagree with all three of them.”
The law will have two big implications on the process of buying or selling a home.
First, an agent will not be able to show a home without a signed buyer's agreement.
Second, a buyer's agent will no longer know if a seller is covering the buyer's agent fee.
Gomez said he's heard many people say these adjustments to fund allocations in a property transaction could benefit both parties.
He disagrees.
“If an agent sends me a buyer that barely has enough for down payment or closing cost and then they’re not able to see like ‘hey this seller’s willing to pay for your buyer’s agent,' and if they show that house, then at that point that buyer’s no longer going to be able to afford to make an offer on that house because they have to pay down payment, closing costs and now for their buyer’s agent.”
As for how realtors are taking the changes, it depends on who you ask.
Brittani Karns travels anywhere from 80 to 100 miles a day. She said she goes wherever a buyer calls from.
She is particularly concerned about her clients having sufficient funds to cover an offer, let alone compensating her on top of that.
“At the end of the day it’s our job to serve them to still show them houses, so we’re not going to say no because that’s our job, but it’s going to impact me and my family because I might not get paid," said Karns.
May West Harrison stays a little more local, primarily servicing Midtown buyers.
Her outlook is a little more optimistic. Harrison says she thinks the change is a neutral one.
“Honestly, this law is protecting buyer’s agents, whereas before, we just worked for whatever the house was paying for," said Harrison. "Now as a buyer’s agent, I can have a fee, that is being paid to me regardless.”
Harrison did acknowledge that these changes could be more difficult for first-time home buyers to swallow.
These changes will go into effect Aug. 17. Buyer's and seller's with more questions can visit the Oklahoma Real Estate Commission's website.
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