CHARLOTTE, N.C. — Real estate agents across the state are navigating new rules that could reduce the cost of buying and selling a home.

These new rules come after the National Association of Realtors announced a $418 million settlement in March that will shift the industry’s traditional payment structure.


What You Need To Know

  • In March, the National Association of Realtors announced a $418 million settlement in lawsuits from home sellers over agent commissions 

  • Traditionally, sellers paid 5%-6% of an agent’s home selling and buying commission

  • Practices within the settlement are now in place, and the final approval hearing is scheduled to take place on Nov. 26

Traditionally, sellers paid 5%-6% of an agent’s home selling and buying commission in a fee that the National Association of Realtors says has always been negotiable.

Despite the shift in rules, real estate agents in North Carolina say the changes should not be unfamiliar to those buying and selling across the state.

“I like being able to help people, being able to take a situation that wasn't favorable for someone else and make their dreams a reality,” said Dylan Seace, a lead agent with High Performance Real Estate Advisors.

As Seace helps his clients buy and sell their dream home, he is also diving into what is considered a big change in the real estate industry that could affect the way a buyer’s agent gets paid.

“It's not just promised anymore from a listing agent, and so now it's more of a skill-based market where if you're an agent who can find a house in a timely manner, negotiate the best deal and make sure that all the terms work for both sides of the party, you're going to get higher compensation,” Seace said.

One of the new rules says an agent’s compensation can no longer be included on multiple listing services but can still be communicated elsewhere.

“We’re not allowed to advertise it on the multiple listing service, which is where 90% of the serious buyers are looking with their agent, so they don't know if they're going to be getting paid, how they're going to be getting paid or what they're going to be getting paid,” Seace explained.

Agents working with a buyer will also have to enter into a written agreement before a house can be shown so buyers know they are picking up the bill if a seller chooses not to cover costs.

“Anybody who still wants to stay very competitive in this market nowadays, we're still seeing them offering a buyer's commission. It's just not called a commission anymore, it's called compensation. At the end of the day, it's going to come in more of negotiation factors, which is what we love, is sitting there negotiating,” Seace said.

Investment Bank, TD Cowen Insights predicts that real estate commissions will fall 25%-50% and open opportunities for other ways of selling real estate.

While practices from the settlement are now in place, the National Association for Realtors reports that the final approval hearing is scheduled to take place on Nov. 26.

For more information on the NAR settlement, you can visit their website here.