The 6% commission, a standard in home purchase transactions, is no more.
In a sweeping move expected to reduce the cost of buying and selling a home, the National Association of Realtors announced Friday a settlement with groups of homesellers, agreeing to end landmark antitrust lawsuits by paying $418 million in damages and eliminating rules on commissions.
The NAR, which represents more than 1 million Realtors, also agreed to put in place a set of new rules. One prevents sellers’ brokers from setting buyers’ agents’ compensation, which critics say led brokers to push more expensive properties on customers. Another ends requirements that brokers subscribe to multiple listing services — many of which are owned by NAR subsidiaries — where homes are given a wide viewing in a local market. Another new rule will require buyers’ brokers to enter into written agreements with their buyers.
The agreement effectively will destroy the current homebuying and selling business model, in which sellers pay both their broker and a buyer’s broker, which critics say have driven housing prices artificially higher.
Don’t know if Canadian market is really different, but in Québec at least more and more people are selling their properties themselves to save on those commission. For instance https://duproprio.com/en#how-much-could-i-save You cannot do that in USA?
You can in many places. Realtors do offer benefits though but usually not 6%.
You can list your home FSBO on the most popular real estate website in the world, completely for free. Nothing stopping you.
There are “flat-fee” brokerages and there are brokerages that advertise “discount” commissions. You can also negotiate commissions with your preferred agent.
You can, but the problem is that realtors won’t show people your property because you are not using a realtor. It is a way to essentially punish people that try to avoid the fees.