CashNews.co
EDEN PRAIRIE, Minn. (FOX 9) – As of Saturday, the real estate industry is coming to terms with a new way of doing business that some believe is the largest shakeup the field has seen in decades.
In a nationwide settlement, the traditional 5.5% to 6% commission is changing.
Moving forward, a person selling their home is no longer on the hook for a pre-arranged commission paid to the buyer’s agent. Instead, parties can individually negotiate that commission, potentially saving sellers money, but then forcing buyers to foot the bill for buyer’s agents, who may see a smaller payday after negotiation.
Real estate attorney Douglas Miller argued real estate commissions were artificially inflated. Now, times are changing, thanks to a lawsuit that he got the ball rolling on.
“The cost to sell a house is going to go down… price-fixing is going to go away. We’re going to see free market forces enter the real estate industry like it never happened before,” Miller explained. “[Relators] are going to have to compete and prove their worth.”
“It might make it a little more challenging, a little more confusing I think, for some buyers,” prospective buyer Nick Hinchley added.
“I like that it can save me some money on the selling side,” he finished.