New changes to real estate means homebuyers may have to pay realtor's commission

BROOKFIELD, Wis. (CBS 58) -- For real estate agent Alex Anderson, selling a home will look a little different. Two new rules will go into effect from the National Realtor's Association. 

The change comes after a $418 million settlement. Gone are the days of calling a realtor and asking to see a home. Buyers will now have to sign representation before they tour a home that explains what the real estate agent's commission is. 

“Before you want to see a property, before I can facetime you or show you any video of the property to walk through the home. We have to have some form of representation signed," said Anderson. "That is what is now being informed to the public how myself as a buyer's rep is being paid to show the property.”

Traditionally, home sellers have paid their broker's commission and the buyer's real estate agent. That commission can be 5 to 6%. Brokers and agents advertised their offers of compensation on a multiple listing service, also known as MLS.

"We have a written agreement that shows conspicuously the dollar amount that an agent like myself, will get paid for either opening up a door for you or for negotiating a contract in order to purchase a house," said Anderson. 

In the settlement, home sellers argued that agents did not show people homes where the seller's broker offered a lower commission. Now, those offers of compensation can't be posted on MLS. 

For buyers like Simon John, another part of the rule could affect him, too. 

“I didn’t know much about the law," said John. “My first question was is this going to make our cost more?”

Home buyers may have to pay their agent if the home seller chooses not to negotiate. 

“If a buyer is coming into the agreement that has the more funds than somebody else, even if you have two people with equal offers, then whoever has the more funds is going to get the purchase," said John. 

Anderson says while there is more transparency in the real estate process now, it could make buying a home more expensive. Still, Anderson says it's too early to tell how this new rule will affect the housing market as a whole

“May have a negative impact on buyers when it comes to the affordability of a home," said Anderson.