Realtors’ settlement could alter Asheville’s home buying, selling scenario

ASHEVILLE, NC (WLOS) — A recent settlement by the National Association of Realtors could save home buyers and sellers in Asheville hundreds of thousands of dollars. But it could also cost them.

The National Association of Realtors agreed to pay more than $400 million in damages to a group of home sellers. If the court signs off on the settlement, the NAR would likely implement the changes in July.

Those changes could help lower the costs for sellers who typically cover the commission for their agent as well as that of the buyer, meaning more homebuyers would be paying for their agent’s commission.

“I think the whole industry could be affected in some way shape or form,” Town and Mountain Realty broker-owner Leah Miller said.

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Typically, when looking to sell a home, the owner would have to pay a non-negotiable 5 to 6 percent commission fee for a listing on a multiple listing service, or MLS. That fee would then be split between the buyer’s and seller’s agents.

In recent years, there have been accusations of agencies leading buyers of more expensive homes.

“Buyers’ agents work for buyers, and listing brokers work for their sellers,” Miller said. “And, in the past, those sellers have offered compensation for the buyers’ agents and can continue to do so. But that cooperative fee can no longer be disclosed.”

REALTOR GROUP’S SEISMIC SETTLEMENT COULD RESHAPE THE PROCESS, COST OF BUYING A HOME

Experts suggest that this will give sellers more negotiating power.

As part of the settlement, there’s also a new requirement for buyers and brokers to have a written agreement.

Miller said that could potentially harm first-time home buyers.

“It could be in the short term a lot harder for first-time home buyers and things like that because they have to put down a down payment, they have to come up with closing costs, they have to pay for all these inspections ahead of time. And now, on top of that, they may also have to pay their broker to be there’s buyer’s agent out of pocket.”