(The Center Square) – As a result of a recent lawsuit, buying a home in Illinois has changed, but a new study shows that maybe sellers should keep things status quo.
For decades, the National Association of Realtors (NAR) required home sale listing brokers to provide an offer of compensation to a buyer’s agent up front. That usually was a 6% split between a seller’s broker and buyer’s agent.
Groups of home sellers brought lawsuits against the NAR for its standard commission structure, claiming it was a violation of antitrust laws. The NAR settled the case for over $400 million, and now new rules in place dictate that home sellers are no longer obliged to offer compensation for a buyer’s agent.
Jamie Seale with Clever Real Estate said sellers who still used a real estate agent made thousands of dollars more than those who sold their house by For Sale by Owner.
“Realtors bring so much knowledge to the sale process like pricing and marketing that in the end what you pay them is usually worth it because they can bring in a larger profit,” said Seale.
The research showed sellers who used an agent earned a profit of $207,500, $79,000 more than the $128,500 sellers who didn’t use an agent made.
Despite the change in commission rules and lower mortgage rates, sales in Illinois are slumping. According to Illinois Realtors, home sales in August were down over 6% compared to August 2023.
Proponents of the commission changes argued that home prices would come down, but that hasn’t happened in Illinois. Prices were 5.4% higher in August compared to August of last year.
The study showed that 80% of sellers who did not use an agent have regrets about their home sale.
“A big regret is feeling like they should have received more offers,” said Seale. “That was the number one regret, and I think it is their lack of marketing experience, they don’t have access to other buyers and other realtors, so they are kind of on their own.”
