Realtor says new rules don’t change much for realtors, buyers

CEDAR RAPIDS, Iowa (KCRG) - In its first two months, what was supposed to be a major change to the real estate industry hasn’t changed much according to the former president of the Cedar Rapids Area Association of Realtors.

As part of a national lawsuit settlement, buyers are now responsible for paying the commission their realtor receives on each home sale.

In the past, the seller paid the commission for both agents.

When buyer’s representation contracts were first introduced, realtors and consultants nationwide worried buying a home would be more expensive for buyers and realtors would earn less commission.

“But for a buyer, I think this is painful. Buyers paying 3% commission and paying closing costs and paying down payments is going to be very very challenging,” said Celena Turner, FSBO Homes co-owner.

But, Raymond Siddell, the former president of the Cedar Rapids Area Association of Realtors, said in his experience, that hasn’t been the case.

“So the biggest change is the form. And the buyers I filled it out with are like ‘yeah Raymond when I called you the first time we had this conversation, we knew about this,’” Siddell said.

Siddell says because buyers representation contracts are negotiable, many sellers are still paying the buyer’s agent’s compensation, meaning the costs for home buyers aren’t necessarily going up.

“Today we still have sellers, many sellers who are offering cooperating compensation as they see the value in having a buyer’s agent,” Siddell said.

While some realtors initially worried the additional contract would complicate the home purchasing process for buyers, Siddell says the contracts have instead added clarity about realtor’s compensation.

“I don’t think that anybody can look at that, hopefully, as a bad thing. I think it creates even more transparency.”

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