By Reyn Uehara
Aloha Pacific Premier Realty Principal Broker
As many of you know, the real estate industry is going through a major change in 2024. Due to an antitrust lawsuit against the National Association of Realtors, the way home sellers pay brokers’ commissions will change.
Traditionally, the sellers and buyers agents would split the commission paid for by the seller. Under the new rules, the seller’s agent cannot split the commission, and the buyer’s agent must negotiate their commission separately – either from the seller or buyer directly. These changes could take place by November of this year.
So how will this affect you as a home seller or buyer? If the buyer’s agent is no longer assured compensation from the seller, it will lead to lower commissions paid, but could also lead to buyers purchasing properties unrepresented. This could be costly for the buyer if problems arise later due to ignored inspections and lack of due diligence.
Also, a seller who does not offer a commission to the buyer’s agent will likely see a drop-off in potential buyers, which could lead to a longer stay on the market. Of course, each situation is different, and potential buyers and sellers must choose the path that best suits them.
Aloha Pacific Premier Realty has already been offering our members a discounted seller’s commission, and we remain committed to providing full real estate services to our buyers and sellers. For more information about these changes and how to interpret them, call or email our principal broker, Reyn Uehara at (808) 383-8072 or [email protected].
