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New Commission rules and how will they affect the real estate market

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Real Estate Agent with Coldwell Banker Realty/Coldwell Banker Commercial NRT 30SA0872839 

New Commission rules and how will they affect the real estate market

 

The new commission rules in the real estate market can have several impacts depending on their specifics. Here are some potential effects:

  1. Transparency: Enhanced transparency in commission structures can lead to more informed decisions by buyers and sellers. This could foster trust in the real estate process and potentially increase market activity.

  2. Negotiation Power: If the rules promote greater flexibility in negotiating commissions, both buyers and sellers might benefit. Sellers might be able to negotiate lower commission rates, and buyers might find it easier to work with agents who can offer competitive rates.

  3. Cost Shifting: Changes in commission rules might shift costs between buyers and sellers. For instance, if buyers are required to pay their agent’s commission directly, it could alter their purchasing power.

  4. Market Dynamics: New rules might affect market dynamics by altering the behavior of agents. For example, agents might focus more on higher-value properties if commissions are more tightly regulated, potentially impacting the availability of services for lower-value properties.

  5. Agent Incentives: The way agents are compensated could change, influencing their motivation and the services they provide. Agents might offer more tailored services or innovate in their business practices to remain competitive.

  6. Regulatory Compliance: Real estate firms and agents will need to ensure compliance with the new rules, which could lead to increased administrative work and potential changes in business practices.

For specific details on how these rules will affect your areas of interest, such as Westchester and Putnam counties, it would be useful to look at the exact provisions of the new rules and how they are being implemented locally.

Mark Don McInnes, Sandpoint-Idaho
Sandpoint Realty LLC - Sandpoint, ID
North Idaho Real Estate - 208-255.6227

Always two edges to a sword, these new changes will have wide sweeping affects no matter the final outcome come the end of the year.  August will give insights to the many side bars to the changes.  m 

Jun 04, 2024 11:05 AM
Thomas Santore Lic Associate Real Estate Broker

Thank you,

tom S

Jun 04, 2024 11:08 AM