SACRAMENTO, Calif. — It’s been a few months since new rules to real estate commissions were implemented, changing the way real estate agents get paid when they help buy or sell a home.
ABC10 checked in with a local expert on how the changes are impacting the market and what it means for you.
Prior to September, the seller used to pay both agents a 5-6% commission split between the agents for the buyer and the seller.
Now, buyers must negotiate commissions with agents directly, and the sellers get to decide whether to pay the buyer’s broker anything.
The changes are part of a $418 million settlement with the National Association of Realtors.
A Sacramento-based broker says it’s led to more paperwork, like the buyer representation agreements.
“All is good so far. Obviously, we’re relatively new — one year from now, I could be telling you something totally different, but as of right now, it’s pretty much business as usual. Sellers are still paying the commission, and we’re not really seeing buyers have to come out of pocket to pay commissions,” said Kevin Oto, with Green Haven Capital.
Oto says he hasn’t seen significant changes in the Sacramento housing market due to these new rules since inventory is low and demand is high, but he does caution consumers to understand the contracts they’re signing, especially when it comes to buyer representation agreements. Watch whether it’s exclusive or non-exclusive.
If you sign an exclusive agreement with an agent, Oto says they might be entitled to a commission even for a home they don’t show you. He warns if you don’t read the fine print, you could be stuck with an agent you don’t want to work with.
WATCH MORE ON ABC10: Northern California's fastest-growing cities
