The San Antonio real estate market is experiencing a shake-up due to a recent legal settlement resulting in new guidelines for realtor commissions. According to Express News, the National Association of Realtors has agreed to a settlement that prohibits home sale listings from including offers of compensation to the buyer's agent. This could mean lower costs for homebuyers and sellers as the traditional commission structure is challenged.
The rule changes, which came into effect last Saturday, demand that buyers must now sign a contract that explicitly states the compensation their agent will receive. As noted by William Curtis, Chairman of the San Antonio Board of Realtors in an interview with Express News, "This is likely one of the bigger shifts we’ve seen in the real estate industry and many Realtors’ careers." Some agents are adapting to these changes by requesting buyers to sign contracts before touring homes, with San Antonio agent Lynn Kirkman stating, "It’s not as bad as everybody says it’s going to be." Meanwhile, the impact on commission rates is already being felt with Redfin reporting a slight decrease in the typical commission rate paid to the buyer’s agent.
Additionally, the San Antonio Board of Realtors has implemented the changes earlier than the national mandate required, as reported by FOX San Antonio. "Keep people from searching by commission, and ultimately keep agents from steering and not that they were doing it," said Curtis, emphasizing the goal of ensuring fair practice in the industry. The new guidelines are intended to facilitate clearer communication between buyers and agents regarding compensation and to dissuade any form of steering by agents toward homes with higher commissions.
These significant changes, while potentially beneficial for transparency and competition, raise concerns about additional out-of-pocket costs for buyers if sellers decline to cover the agent's commission. According to Express News, the median sale price in the San Antonio area has increased since the start of the pandemic, placing additional financial strain on buyers. Jef Conn, Chairman of Texas Realtors, reassured buyers in a statement obtained by FOX San Antonio that, "The buying and selling process is going to be essentially the same," and advised buyers to seek guidance from their agents throughout the process.
