Real Estate Experts: New Rules for Home Sales is Good For Consumer

The lawsuit by the National Association of Realtors is sending shockwaves throughout the country, but as one local real estate agency explains, there's really not that much shock.

Bill and Robin Mongeau appeared on WIBX's Keeler in the Morning Show on Tuesday to explain what the new rules mean.

"It's actually good for the consumer," said Bill Mongeau. He said home sellers will now realize that they can negotiate the commission process with the real estate agency they choose, but it just won't be a part of the advertisement promoting the house sale.

Mongeau said this does not limit commissions, and it places the buyer in a position where they can make an offer that shares the cost, for they could choose not to. "If a listing agent decides they want to share their fee, that's there prerogative. If they decide they don't want to share their fee, that's also the prerogative."  "They just can't broadcast it and say hey general public - this is the rate and half of it is going to somebody else."

Mongeau added that the misinformation that's in the national news media claiming that this will mean houses will sell for less, is just not true. He said if a seller has a $300,000 home, it's highly unlikely that they'll trim a chunk of that off the asking price because of the new commission rules.

He added that it's good for consumers to understand that a commission can no longer be set in stone, and advertised at a certain rate and structure. The consumer will now understand they have the right to negotiate the rate.

Listen to the complete interview with Bill and Robin Mongeau in the YouTube video below.