Commission for the seller agent - new supreme court rule

[Alberto Cioni]

Hello

I am in the process to sell my investment rental house in Los Angeles. Now the rules have changed. I think and I am not require to pay a 3% commission to the buyer agent. 

I read that I should negotiate only the commission for our sale agent, our trustable real estate agent. For example I contacted Redfin and they are asking only for a 1.5% commission as a sale agent. 

Then the buyer agent with deal with the buyer for his commission.

Is this is correct? What is your experience?

Alberto, Landlord, Los Angeles

[Russell Brazil]

Quote from @Ned Carey:

@Russell Brazil do you want to answer this one?

 Sure.

This has nothing to do with the Supreme Court off the bat.

This is in regards to a class action settlement. Previously a seller or listing agent offered out a set buyers agent commission in the MLS. They can no longer use the MLS to do so. That is it, thats the change.

How people handle this varies however. Some sellers may offer out a set amount and advertise it off the MLS. However that offer means nothing. When a buyer makes an offer on the house, their offer will typically ask for the amount they contracted with their agent for.

This system generally disadvantages sellers though as we have seen average commissions rising with the new system. But this is what the courts, lawyers and DOJ wanted.