04 Apr How will the NAR settlement affect Minnesota real estate?
How will the NAR settlement affect Minnesota real estate?
It is too soon to know for sure but here is what we are being told. In the MLS there will no longer be a commission stated for buyers’ agent to be paid by the seller. So, now either the buyer must pay for their agent’s fee or the contract to purchase with the seller will need to stipulate the seller paying the buyer’s agent a specific amount.
How might that impact Minnesota real estate? Buyers who barely have enough money to cover the down payment and closing costs might see themselves no longer in the market to buy a home and that would mean less buyers in the MN real estate market. Some economists think prices will decrease with a reduction in buyers.
For the seller who is selling and buying a home it could just be about the same if they do not pay a commission to the buyer’s agent on the sale of their home but pay one for the buying side of their purchase. We must wait to see how it all plays out.
Real estate commissions have always been negotiable so this will be nothing new to our industry. Agents that create more value for their clients, like listing agents who spend thousands on marketing the home, will in most cases demand higher commissions than those who simply put the home in the MLS and expect the house to sell themselves. And agents with years in real estate on the buy side might demand higher commission because of their wealth of experience and how that might positively help their clients.
They say this will all come into play in July but look for more information from me when we know more.
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