What is going on with commissions in the Real estate industry?
Currently, there’s a lawsuit involving the National Association of Realtors (NAR) regarding how real estate commissions are set. The lawsuit alleges that NAR’s rules around commissions may limit competition and transparency in the market. It’s an ongoing legal matter aimed at potentially changing how commissions are structured in real estate transactions. It’s worth noting that in Idaho, real estate commissions have always been negotiable between buyers and sellers, allowing for flexibility in how they are set. Starting from August 7, 2024, there will be no reference to broker or realtor compensation in the IMLS (Intermountain Multiple Listing Service). Additionally, buyers in Idaho will be required to sign a representation agreement with their buyer’s agent, which discloses who will pay the buyer agent commissions and how much they will be responsible to pay their agent before being able to tour a listed home, unless they choose to work directly with a listing agent. It’s important for buyers to understand and agree to the terms of compensation for their agent prior to proceeding with viewing or purchasing a home. It will also be crucial to ensure you’re working with an experienced agent who has real expertise in navigating these changes and protecting your interests throughout the home buying process.
As a real estate broker with over 17 years of experience in Southwest and Central Idaho, and as an Idaho native, I am well-positioned to guide both buyers and sellers through these confusing times. Whether you’re in Eagle, Star, or Ada, Canyon, Payette, Idaho, or Owyhee County, I can help navigate those specific areas and provide you with expert advice tailored to your needs.”