How will homebuyers, sellers be affected by the National Association of Realtors’ latest moves?

On Tuesday, the National Association of Realtors clarified some details about the recent lawsuit settlement.

ROUND ROCK, Texas — Last week, the National Association of Realtors agreed to a settlement worth $418 million after a lawsuit alleged the group conspired to raise commissions

There has been reporting that the NAR would eliminate the standard 6% sales commission, but that’s not the case. Realtor Drew Griffin says commission rates have always been negotiable.

“Pricing has been negotiable since day one. It’s been negotiable forever. And so the main thing that’s changing, I think is that the National Association of Realtors has agreed to provide a lot more clarity and transparency in who’s representing who. How are they getting paid and how to go through that process,” Griffin said. 

Instead, Griffin says the biggest change is that real estate agent compensations will no longer be allowed to be listed on multiple listing services. For homebuyers and sellers, Griffin believes that opens the door for more discussions about commission rates.

RELATED: Austin-based real estate groups react after National Association of Realtors axes standard commissions

“I think what that’s going to do is that’s going to force more upfront conversations with the buyers’ agents and their buyers in terms of how the fees work,” Griffin said. “So I think that anything that offers transparency and clarity on the process as a whole is good, including buyer’s agent commissions, listing commissions and any other fee that’s associated.”

Since these changes will not go into effect until July 2024, Griffin says realtors are still trying to figure out how this will impact the market and how people buy and sell real estate.

RELATED: New real estate report calls Austin housing market ‘optimistic’

“So we’re concerned that buyers might elect to be unrepresented during a purchase due to a lack of clarity around the fees,” Griffin said.

Mary Schott, from Staten Island, is in the process of moving to Central Texas. She says having a realtor has eased the process of buying a home.

“I’m a first-time homeowner and first, I’m moving to Texas,” Schott said. “It’s a whole new world where I come from, Staten Island is a changing place and I really don’t want to be there anymore. I want out and I’m very pleased with my house.”

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