MONROE COUNTY, Pa. — Thomas Wilkins of Wilkins and Associates with Better Homes and Gardens has been in the real estate business for more than 40 years. Recent news of a court settlement with the National Association of Realtors is shaking up how realtors make commissions.
"I've seen some stuff in my day, and I have to say I think this is going to take the cake, this NAR settlement. This is going to be the biggest change in real estate," Wilkins said.
The National Association of Realtors announced it would pay $418 million to settle a class-action lawsuit over broker commissions.
If approved by the court, the ruling states people selling homes will no longer have to give a cut of the sale price to the buyer's agent, a system Wilkins says has been in place for years.
"No longer will they go and be able to put rates of compensation in the MLS. Right now, if I wanted to show 123 Bumblebee, I know what I am going to get paid before I show it. Now, they are saying that can't be done because somehow it is price fixing. I don't see how. Now, I don't know what I'm going to get paid," said Wilkins.
Local agents say the people who could get hit the hardest with these changes are first-time home buyers.
"If all of the sudden we go and say, 'Emily, you need another $3,000 to pay my fee for representing you,' you are either going to try to do it on your own and get hurt—a real estate transaction is a legal process—or it's going to be the straw that breaks the camel's back, and your dreams are going to be shattered."
If approved, changes would take effect in July.