Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by John Nelson, financial planner at NelsonCorp Wealth Management. Welcome back, John.
John Nelson:
Thanks for having me, Brandy.
Brandy Auterson-Hurst:
So there have been some big changes in the real estate world lately. Could you share your thoughts on that?
John Nelson:
There have. Specifically in the residential real estate market, we’ve seen big changes to how realtors are paid. The commission structure that has been in place for some time is changing pretty significantly. And what I brought with me today is a graphic to help give some perspective on that change and what’s taken place.
This is a result of the National Association of Realtors court case settlement. And what we’re illustrating here is that commissions since the great financial crises in ’08 and ’09 at that time were relatively flat. But since then, over the last 12 years, we’ve seen over 100% increase in terms of commissions and fees that have been paid, and that’s come under a lot of scrutiny over the last few years in particular. So things are changing there for a lot of people and I don’t think these changes are happening overnight, but definitely something that all viewers should keep an eye on.
Brandy Auterson-Hurst:
Okay. So what do you think this means for viewers who might be looking to buy or sell a house?
John Nelson:
Yeah, I think there is going to be continued consolidation in this sector as there have been in so many others. Those that remain are going to be much more creative and dynamic in terms of how they structure things. More transparency, I think, is great for buyers and sellers and I think this will take place over the next 6 to 12 months.
Brandy Auterson-Hurst:
If you missed any of our discussion, we’ll make it available for you on ourquadcities.com.
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