On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski and Wealth Advisor Beau Wirick discuss the recent policy changes around realtor commissions due to the National Association of Realtors’ settlement and how they may affect the market.
· Three key changes are highlighted:
· Because of the elimination of automatic co-fee sharing between sellers’ and buyers’ agents, buyers would now be responsible for directly compensating their agents. This may lead to higher upfront costs or opting out of agent representation.
· Beau says even though sellers do not have to pay the buyer’s agent, it is unlikely they will lower their home price just because of that.
· Despite potential benefits for sellers in the short term, there is uncertainty about the long-term effects on the real estate market, including the possibility of freezing the housing market further due to increased costs for buyers.
On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski and Wealth Advisor Beau Wirick discuss the recent policy changes around realtor commissions due to the National Association of Realtors’ settlement and how they may affect the market.
· Three key changes are highlighted:
· Because of the elimination of automatic co-fee sharing between sellers’ and buyers’ agents, buyers would now be responsible for directly compensating their agents. This may lead to higher upfront costs or opting out of agent representation.
· Beau says even though sellers do not have to pay the buyer’s agent, it is unlikely they will lower their home price just because of that.
· Despite potential benefits for sellers in the short term, there is uncertainty about the long-term effects on the real estate market, including the possibility of freezing the housing market further due to increased costs for buyers.