Association of Realtors no longer wants standard commissions

CORPUS CHRISTI, Texas — Following a recent settlement the National Association of Realtors has decided to do away with standards commissions, giving consumers the power to negotiate. However, according to local real estate professionals the consumer has always had this power.

“This is actually how the commercial real estate industry works as of now,” said realtor and co-owner of Prime Real Estate, James Sandoval.

He said that the two rules coming down from the National Association of Realtors are: 1. Making a buyer representation agreement mandatory, and 2. No longer disclosing the commissions in the Multiple Listing Service (MLS).

“In the Coastal Bend you’ll see 2.5% and 2.5% for buy and sell or you’ll see 3% and 3%,” Sandoval said. “At the end of the day, it’s all negotiable.”

According to Sandoval both buyers’ agents and sellers’ agents are still going to be compensated but now it’s based on negotiations.

“This is an emotional transaction that involves a lot more than opening and closing doors,” he said. “This involves a whole lot more.”

The Chism Atnip team, who has a combined experience of 37 years in real estate explained how these new changes benefit the consumer.

“I think some consumers didn’t understand the buyer’s representation agreement, but it’s like you wouldn’t ask your doctor to perform a surgery without checking him and getting a guarantee that he was licensed to perform that surgery,” Char Atnip said. “Now I think the consumer will be doing a little bit more homework which is a good thing for everybody involved.”

Sandoval explained that more people might be tempted to represent themselves but that’s a great opportunity for agents to sell their skills and what they bring to the table.

“The real representation happens when you guys go into contract, and we leverage the fact we know people such as inspectors, escrow officers, title insurance, everything,” he said. “It entails it’s a team of people not just a realtor.”

The changes to real estate commissions will go before a federal judge and if approved will go into effect this summer.

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