How a recent real estate agreement could change the way Americans buy and sell property

housesthat could fundamentally change the way homes are bought and sold in America. The agreement would effectively wipe out regulations that many critics believe are driving up home prices. The new rules are more likely to be fairer to home buyers and sellers who face the most expensive marketreal estatefor generations.

However, even after the $418 million agreement goes into effect in July after court approval, some things will remain the same. Commissions will not disappear, and they will still be negotiable. Buyers' and sellers' agents will still be able to split commissions. The new rule prohibits the inclusion of agent compensation in listings on localized portals known as multiple listing services.

Critics say that could have led some brokers to steer their clients to properties that could have earned them larger commissions. Another change is that brokers will now have to subscribe to multiple list services - many of which are owned by NAR affiliates.

A separate new rule will require buyer brokers to enter into written agreements with their buyers.

The changes to the commission structure are expected to reduce commissions by 25% to 50%, according to analytics financial firm TD Cowan. It could also lead to some brokerage firms offering cut-rate, discounted services or, conversely, becoming high-end “we do it all” boutiques.

Buyers are not usually burdened with the cost of paying agents. While this is now becoming more likely, it is still not mandatory. Under the agreement, which requires court approval, sellers can still pay their agents and the buyers' agents.

However, on centralized listing systems, sellers will no longer have to pay a buyer's agent commission. In fact, sellers will not even be able to specify how much they pay their agents on these centralized listing systems. This means that buyers will have to negotiate terms with their agents and include this in their buyer representation agreement.

These are the kinds of changes that are leading to a rethinking of how the real estate market will work and how it will affect the participants in that market.