How changes to real estate commissions have changed the industry | Dollars & Sense

In tonight's Dollars and Cents, I'm tracking the impact of a big change to real estate commissions. It's been a few months now since new rules took effect, changing the way real estate agents get paid when they help buy or sell a home. I checked in with a local expert on how these changes are impacting the market and what it means for you. The new rules took effect in September. Up until then, the seller used to pay both agents a 5 to 6 percent commission, split between the agents for the buyer and the seller. But 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 tells me this has led to more paperwork, like the buyer representation agreement. All's 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, I mean, 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 their agents. Odo 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 your buyer representation agreements. You'll want to watch for whether your agreement is exclusive or non-exclusive. If you sign an exclusive agreement with an agent, Odo 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. Remember, your money questions have answers. You can find all my dollars and cents stories streaming now on ABC10+. The app is free and available on Roku, Amazon Fire TV, and Apple TV. You can also email me your questions at lpainter at abc10.com.