Realtor rules just changed dramatically. Here's what buyers and sellers can expect

In the age of the internet, access to real estate information is at an all-time high. Buyers can know virtually anything about a home on the market: not just bedrooms, bathrooms and square footage, but how much the home previously sold for, and how much similar homes in the area are selling for.

Buyers can also receive alerts to know exactly when a house in their price range hits the market, so some savvy shoppers might opt for an agent who leaves the touring process to them, but can help them look over an inspection report and file the right paperwork in the closing stages of the deal.

If a buyer wants a robust, hands-on agent that's available 24/7, they can offer 3% or even more. If they want an agent who can just handle the more technical elements of the deal, they could offer 1% or 2%.

Some buyers might try to handle the process themselves and not pay an agent at all.

"Good agents will be able to show their value," said Compass agent Michael Khorshidi. "Agents who aren't able to show their value won't benefit from this."

New dynamics — and roles — for agents

For many agents, representing buyers can be rewarding since they get to help someone find their dream home, but the process is often more time-intensive. Agents might spend weeks or months setting up tours for clients, and there's no guarantee that they'll even buy a property in the end.

For that reason, many veteran agents prefer to represent sellers. The work is often more efficient — especially in a hot market, where deals can close in days.

So if the new rules leave less guaranteed money on the table for buyers' agents, those agents might try to switch sides and only represent sellers. Or if they're not able to make enough money representing buyers, they might exit the industry altogether — a trend that's already taking place in Southern California's cold post-pandemic real estate market.

Brent Chang, a luxury agent active in San Marino and Pasadena, said the new rules could lead to agents who specialize in specific types of sales.

"Just as there are agents like me who specialize in selling landmark properties, a new group of agents will emerge who specialize in helping buyers with highly competitive properties," Chang said.

He said agents who have a proven track record of winning properties for their clients will be able to demand higher commissions.

Or their deals can be performance based. For example, an agent could represent you for 3%, and if they get the property for you, it's another 3%.

"Ultimately, if the ruling leads to buyers receiving better service from their agents, then it has merit," he said. "But I suspect it'll be a while until we understand the consequences of these changes."