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This push toward “decoupling commissions” is a movement built on assumptions that have been dispelled — once again — by a recent, nationwide study that demonstrates the harmful effects this proposed change would have on the residential real estate market, particularly first-time homebuyers and those from minority groups. “Be Careful What You Ask For: The Economic Impact of Changing the Structure of Real Estate Agent Fees,” was conducted by two former Freddie Mac executives and a former senior advisor at the Department of Housing and Urban Development.
Using straightforward economic modeling, the researchers concluded that requiring buyers to come up with the additional funds needed to compensate their broker at closing would make it significantly less likely that first-time and other aspiring buyers could afford a home.
FULL TEXT: Opinion: Changing real estate compensation harms fair housing – Housing Wire
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