minneapolis —Minnesota home sales may look different in the future.
Recent antitrust lawsuits in Missouri It could impact real estate here.
“The whole real estate industry is talking about it,” says Ryan O’Neal of ReMax Advantage Plus.
Homeowners in Missouri have filed lawsuits against some brokers and real estate agents. They argued that home sellers did not have to pay commissions to buyers’ agents because they were not agents. In the end, the home seller won the case.
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“I think all the different brokers and agents in the city are listening on the ground, so they’re aware of how it could potentially impact us,” O’Neill said. Ta.
He said it’s common in Minnesota for sellers to pay the buyer’s agent a commission of 2.5% to 3%. But if what happened in Missouri happens here, sellers might be able to get away with it.
O’Neill says that means buyers won’t be able to pay that fee and may have a harder time affording their own real estate agent.
“If they can’t get some sort of representation, that’s a negative for them,” he says.
Anticipating what happened in Missouri, one Twin Cities real estate company has eliminated traditional fees altogether. Joey Torkildson is a Roseville resident who runs Voila Real Estate.
“No matter what the price of the house is, it’s the same amount. Let’s say $5,000,” Torkildson said.
Thorkildson thought the subway fees were too high, so he started his own business. Instead of a traditional commission, he charges his $5,000 flat fee, and sellers have the option of passing a portion of it to the buyer’s agent, but are not required to do so.
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“We basically gave them complete autonomy and just said, ‘If you want to offer something to the buyer’s broker, how much is that?'” Torkildson said. Ta.
Like O’Neal, he doesn’t yet know what the Missouri lawsuit means for Minnesota. But that’s one reason he suggests another option.
“Sellers are finally starting to ask questions, and they’ve been asking them at a very high level in Missouri. They’re asking, ‘Why are we paying both agents?'” Torkildson said.
Torkildson and O’Neill agreed that the lawsuit could be a thorn in the side for buyers at a time when housing inventory is low and interest rates are high.
An appeal of the Missouri ruling is expected.