CHARLOTTE, N.C. — The process of selling a house is going to look different starting next month. It’s all stemming from a lawsuit against the National Association of Realtors, which it settled for $418 million earlier this year. It’ll affect North Carolina’s 54,000 realtors.

What You Need To Know

  • Listing agents can no longer advertise commission for buyer’s agents

  • The changes stem from a lawsuit against the National Association of Realtors 

  • NAR settled with sellers earlier this year for $418 million to be paid over four years

  • Sellers claimed NAR rules forced them to pay an inflated amount to buyer’s agents, but NAR says realtor commissions have always been negotiable

Starting August 17, listing agents can no longer advertise commissioner’s fees or how much the seller is willing to pay the buyer’s real estate agency when they sell the house. That led many to question if buyers would have to pay their realtor’s commission moving forward. 

According to the lawsuit, sellers claimed NAR rules inflated buyer’s commissions, but Charlotte realtor Grace Walser said there’s a little confusion surrounding what sellers had to pay from their home sale.

“They were feeling like they had to pay the buyer’s agent commission out of the funds they were receiving,” she said. “But, in reality, the listing agent is charging them a fee and that listing agent is then choosing to split that however they decide with the buyer agency.”

Walser added even though many selling agents may have split a 6% commission with their counterparts, NAR never set a standard for commission. 

Sellers can still actually offer to pay commissions to the buyer’s agency. They just can’t post that offer in the multiple listing service or MLS. Walser said moving forward it’ll be in the best interest for everyone if the seller continues to offer commission for the buyer’s agent. 

“They’re going to get a lot more exposure from potential buyers,” she said. “They’re not going to be looking at houses that might not offer that commission.”

Continuing to offer that commission will allow first-time buyers like new homeowner Scott Brumley to buy a home. 

“It’s pretty hard to get into a home as a first-time homebuyer. So, I think having that price kind of taken out of the equation unlocked a lot of doors for us,” he said. “I don’t think we could’ve bought this property if we had to actually pay that commission.”

Next month, buyers across the U.S. will also be required to sign a buyer agency agreement. Meaning that if the seller is unwilling to pay their realtor’s commission, the buyer will have to come out of pocket for it. Not much of a change for North Carolina since the state already requires a signed agreement prior to going house hunting with a realtor.