- Watch the video for comments from Collin Cote, President of the Jackson Area Association of Realtors
- Impact of the settlement will be more clear by summer
- Some experts say it may lower closing costs for homebuyers
(The following is a transcription of the full broadcast story)
The housing market in mid-Michigan continues to be hot. But some experts say a recently settled multimillion dollar lawsuit might lower closing costs for buyers.
Collin Cote, President, Jackson Area Association of Realtors: "We need more houses to list! If you know anybody who's got a house to sell — we need some."
Tight supply continues to dog realtors trying to find listings to market. And despite interest rate hikes, buyers are still facing rising prices. Now, a $418m dollar settlement of a case against the National Association of Realtors may lower costs for buyers. The settlement changes the way in which agent commissions are established.
The Jackson Area Association of Realtors was, frankly, surprised by the settlement, says President Collin Cote.
Collin Cote, President, Jackson Area Association of Realtors: "Well I was surprised. 'Cause I just thought they would appeal it longer. But then, after reading everything, I understand because they wanted to take the liability off of all the brokerages around the country."
Experts are saying the settlement could cut commissions by as much as 50%. The industry standard 6% could become much more flexible. Cote isn't so sure.
Collin Cote, President, Jackson Area Association of Realtors: "Everything's always been able to where you can negotiate your commissions. They've always been negotiated that way. And so, the practical application of this will still be determined yet. You know, maybe it will make them realize that you can negotiate where some didn't negotiate. It's going to change maybe a little bit for buyers more than sellers."
Cote was also skeptical about predictions that changes to commissions would cause an exodus of agents.
Collin Cote, President, Jackson Area Association of Realtors: "I don't think it's going to change that much. Everybody…you know, it's like any other business. There's a certain amount of people that make the majority of the money, and they're still going to do that. And you're going to have to work and get out and talk to people just like you always have to be able to do business."
I reached out to several real estate agents in our neighborhood for their take on how this might impact buyers, sellers, and agents. All declined to comment.
Cote tells me we'll know more about the impact of the changes by summer, when they're scheduled to take effect.
Want to see more local news? Visit the FOX47News Website.
Stay in touch with us anytime, anywhere.
Sign up for newsletters emailed to your inbox.
Select from these options: Neighborhood News, Breaking News, Severe Weather, School Closings, Daily Headlines, and Daily Forecasts.
