In our spotlight on Business Report, a major shake up in the housing market.

Real Estate Commission rules are about to change.

Shifting that 6% fee paid to realtors when buying or selling a home to just a fraction of that.

It comes after the National Association of Realtors agreed to pay a landmark $418 million to settle lawsuits from home sellers who argued commissions were inflated.

Critics also said the longstanding policy helped drive home prices higher.

But what will it mean for the pockets of those looking to buy or sell a property in the state?

Gloria Monks is the president of New Jersey Realtors and recently joined me to talk about the change.

Gloria, thanks so much for your time today.

I'd like to first just get your reaction to this settlement and what it will mean for homebuyers.

So the settlement right now is a proposed settlement.

It has not been signed off on.

We expect it to be essentially signed off on within the next few months.

And the changes that they are talking about will take effect sometime in July.

So right now, I don't see many changes happening with regard to the market.

You know, commissions have never been fixed.

It's always been very negotiable.

It's between the listing agent and the seller.

What will this mean, though?

Is it the end of this?

You know, the 6% rate that a lot of us are talking about?

I know you say it's not fixed, but that is generally the number that these deals are based around.

Does it spell the end for that?

Well, as far as commission rates, I haven't really seen any particular numbers that it's always been a conversation between sellers and the listing agents.

So we haven't had any fixed number or, you know, that it's it's just a matter of how the conversation will be.

With regard to the listing agent, talking with the seller, as we know, first time homebuyers don't have a lot of excess cash to pay broker commissions.

And so, you know, we just have to wait and see how this pans out once the the settlement is signed and everything is done.

It is something that I don't want to speculate and say that prices are going to drop.

Our inventory is very, very low.

As of right now, we only have two in in Mercer County, which is where my market is.

It's two and a half months worth of inventory.

A healthy market would be around six months.

So with the scarcity of inventory, prices will remain high.

I mean, you know, we just don't know what what's going to happen here.

So, again, as far as you know, how it will help, first time homebuyers would be pure speculation.

What are you hearing, Gloria, from your members, from fellow realtors?

Because ostensibly, this could be less money in their pockets right now.

I think they are continuing to do business the way they've done it in the past, and that is negotiating commissions.

What works best for the sellers when they talk with the sellers about what the commission rate will be when they list the property.

And, you know, the difference will be in how things are put into the MLS.

And so not having commissions in the MLS will start the conversation for buyers to have with their buyers agents.

They'll be able to talk with the sellers agents, to talk with the sellers about what the commissions will be.

But you know, how this all shakes out is it's never happened before, so we really can't say.

Yeah, a lot to be seen.

Gloria Monks is the president of New Jersey Realtors.

Gloria, thanks so much.

Thank you, Briana.

Thanks for having me.

Support for the business report provided by the New Jersey Chamber of Commerce announcing its renewed Jersey Business Summit and Expo March 26th.

And 27 at Harrah's.

In an exciting event detailed online at N.J. Chamber Dot.com.