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For decades, the National Association of Realtors (NAR) required
home sale listing brokers to provide an offer of compensation to
a buyer’s agent up front. That usually was a 6% split between a
seller’s broker and buyer’s agent.
Groups of home sellers brought lawsuits against the NAR for its
standard commission structure, saying it was a violation of
antitrust laws. The NAR settled the case for $418 million. Now
new rules in place dictate that home sellers are no longer
obliged to offer credits for a buyer’s agent.
Under the settlement, NAR agreed to put in place a new rule
prohibiting offers of compensation on listing databases governed
by the group, also known as multiple listing services (MLS), to
put to an end a series of lawsuits claiming broker commission
policies resulted in inflated fees.
Jenna Hamm, CEO of the Peoria Area Association of Realtors, told
WEEK-TV in Peoria that buyers may not view a home until they
sign a buyers agreement.
“Buyers will have to be very diligent in the homes they want,
and with the terms they’re looking at to purchase a home. The
buyers will submit an amendment to our purchase agreement,” said
Hamm.
Nick Pisano with Clever Real Estate said the changes may force
some realtors out of the business.
“When you’re having to get buyers to sign an agency agreement
before you even get started, that is a little more difficult and
time consuming for agents who only do a couple deals a year,”
said Pisano.
What effects the changes will have on the Illinois real estate
market remain to be seen. The changes come just as the Illinois
housing market is gaining momentum. With mortgage rates coming
down, there was a 6% uptick of home sales in July statewide
compared to a year ago.
Home prices in Illinois continue to climb. Prices were over 8%
higher in July compared to July 2023. The median sales price of
a home in Illinois is now at $308,000.
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