(LEX 18) — With 20 years of experience in real estate, Paul Sabourin with The Local Agents is used to changes in the industry.
"When I first bought a house, the realtor was carrying a book," he said. "We didn't even have the internet."
Now, he's preparing for another shift. If a landmark realtor commission settlement is approved, the cost of buying and selling a home could drastically change in the United States.
Traditionally, "Sellers were offering a commission to a broker's office to bring in a qualified buyer," he explained. "But that practice is probably going to change drastically."
That's because of a $418 million settlement announced Friday between the National Association of Realtors and several real estate brokerages and sellers. It's over allegations the NAR artificially inflated realtor commissions.
If the deal is approved, sellers will no longer need to pay both their broker and a buyer's broker.
"Already I've gotten emails, texts, but it's still too early to have a lot of answers," said Sabourin.
Some industry experts say this change could boost the housing market. Investment banking firm KBW predicts a 30% drop in the amount Americans pay in commission fees.
Sabourin says he's focused on helping his clients at this point, and we should know more by July when the changes are set to take effect.
"The key thing I think for us would be making sure to continue taking care of the consumer, take care of the customer, give representation, and help people get into homes," he said.
Sabourin told us he's keeping an eye on how the settlement would impact veterans who use VA loans, because right now they are not allowed to pay real estate brokerage fees with the product.
