AUSTIN (KXAN) — New rules for real estate agents go into effect on Saturday, but Texas Realtors Chairman Jef Conn said that they won’t greatly change the process for sellers and buyers.
“The biggest change you’re going to see is you will be required to sign a agreement with an agent prior to looking at a home,” Conn said. “The process of buying and selling a home is going to look very similar today as it will Saturday and beyond.”
The changes came as part of a multi-lawsuit settlement by the National Association of Realtors, which was accused of monopolistic practices that inflated realtors’ commissions. The NAR also paid $418 million in the settlement.
Agent compensation and commissions are a big part of the new rules, with sellers no longer setting the rate for a buyer’s commission. That rate will now be handled between the buyer and their agent.
Conn said this change is unlikely to affect home prices.
“The price of a home is a product of supply and demand. It’s not a product of the compensation. [Buyers] need to talk to their agent about compensation and make sure they get pre-qualified,” he said. “Home buying is complicated, so make sure you talk to your realtor about what the entire process is going to take, and they can guide you through it.”