INDIANAPOLIS (WISH) — New rules for real estate agents that went into effect in mid-August and have been planned for years are now in effect.
Despite the long lead time, it could still be years before the full impact is fully apparent, according to Business Insider’s James Rodriguez.
“It’s a pretty big change that I think will add a lot more formality to a relationship that has been almost surprisingly casual in the past,” he said.
Rodriguez has been following the issue closely, appearing on News 8’s Daybreak to provide insight into how big the impact of the changes could actually be.
“These new rules will require the buyer’s agents to sign an agreement with the buyer before the buyer can even view the home. It will say, ‘I expect to be paid this much, and if the seller doesn’t pay that commission, you may have to cover it.'”
When asked whether headlines like “New rules for real estate agents mean an end to casual house hunting” were exaggerations or reality, Rodriguez leaned toward the latter.
“You can still go to an open house and look at the house without an agent. But if you want to look at the house with someone by your side, you as the buyer will have to sign some sort of agreement.”
Rodriguez raises some interesting scenarios in his article, including the possibility of real estate agents charging prospective buyers hourly rates rather than hoping for a commission that may never be paid.
“I think that’s going to be a potential model. How popular it will be, I don’t know exactly. But I think you’re going to see all sorts of different models as people try to figure out, ‘OK, how much value am I actually getting from this agent?’ And for the agent, ‘How much value am I getting for my services?'”
Rodriguez also expects that, to some extent, more buyers will try to “go it alone” rather than working with an agent.
“I think you’re going to see more people doing this overall. However, I think the majority of people want someone. They want a human to walk them through the process. It’s such a complicated transaction that people may only do a few times in their lives, and so I think a lot of people will still seek that representation.”
