Is the Residential Real Estate Market Ecosystem Ready for the Biggest Shakeup in a Generation?
The residential real estate market is on the brink of a seismic shift
I have been in the real estate, mortgage, and development business for over 30 years. I believe massive changes are coming to the residential real estate market, which is on the brink of a seismic shift with the recent changes in how agent commissions are handled. Companies in this business, affecting all facets of the real estate ecosystem, will be affected. Is this healthy for the housing system and consumers? For decades, it’s been standard practice for sellers to pay both their agent’s and buyer’s agent's commissions, typically amounting to 5-6% of the sale price, split between the two agents. This system is now being challenged, and the potential fallout could upend the market as we know it.