Carpe diem! After recent ruling, Elk Grove real estate agents promote lower commissions
https://www.elkgrovenews.net/2024/03/carpe-diem-after-recent-ruling-elk.html
It didn't take long for real estate agents to react to a ruling and settlement expected to lower home sales commissions.
In a settlement announced last week in a class action lawsuit, the National Association of Realtors (NAR) agreed to end a decades-long system that artificially set home sales commission at six percent. Last November, a Missouri jury found that the NAR and several large brokers had conspired to set commission rates artificially.
Following the November verdict and last week's settlement announcement, real estate analysts predicted rates would fall, proving to be a windfall for consumers. Not one week has passed, and some real estate agents are already seizing the opportunity.
Three enterprising agents, Kelly Le, Ivy Nguyen, and Lien Pham of Jade Stone Real Estate, are promoting their lower commission rates in a mailer received today in Elk Grove's 95624 zip code.
The three agents offer rates of two percent for the seller and 2.5 for buyers, for a total commission of 4.5 percent. On the sale of a $500,000 house, the total commission paid is $22,500 compared to $30,000 in the previous commission structure.
To sweeten the deal, the trio further lowers the total commission to 3.5 percent when representing the buyer and seller. With homes selling swiftly, the agents could capture many listings and sales.
While no agreement exists on how the lower commission will affect real estate prices, it is expected to benefit consumers.
The Washington Post reports that it is "predicted that changes to the commissions structure could lead to a 30 percent reduction in the $100 billion annually that U.S. consumers pay in real estate commissions."
As for its effects on agents, analysts suggest the lower commission structure could eliminate lower-performing agents. In the new lower commission environment, the Jade Realty agents have seized the opportunity to attract more transactions and establish a more competitive commission market in the Elk Grove real estate market.
Above photo by RDNE Stock project via Pexels.
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