MONEY

Maybe Realtor Commission Settlement Really Is Pushing Costs Down

I’m a little surprised

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I have to admit I was skeptical that the new real estate commission rules that take effect Aug. 17 would bring down consumer costs. After all, the rules say nothing about how much real estate agents can charge buyers. They just dictate that buyer agent compensation no longer is set by the seller, and it’s no longer reported in the multiple listing service.

So I was a little surprised by a new analysis from Redfin, the discount brokerage, showing that buy-side fees already have come down since the new rules were announced earlier this year. The typical U.S. home seller pays a 2.55 percent commission to the real estate agent hired by their home’s buyer, Redfin says. That’s down from an average of 2.62 percent in January.

The takeaway? Home buyers might be in a position to bargain harder than they have in the past. The Consumer Federation of American this week urged buyers to insist on paying 2 percent or less of the home price to their buyers agents — and ideally to push for a flat fee rather than a commission based on the purchase price of the home.

The new rules are part of a legal settlement after the real estate industry lost an anti-trust suit in federal court last year.