Daniel Kianmahd

1. Real Estate Agent Commission Rules Change Goes into Effect in California: Insights from Daniel Kianmahd The real estate industry in California is no stranger to change. From fluctuating market conditions to evolving technology, agents, brokers, and consumers must constantly adapt to new realities. Recently, a significant shift has occurred in the way real estate commissions are structured and disclosed in California, bringing about changes that are expected to have a profound impact on the industry. Daniel Kianmahd, a prominent figure in the California real estate market, has weighed in on these changes, offering his perspective on what they mean for agents, buyers, and sellers alike. The New Commission Rules: An Overview The California Department of Real Estate (DRE) has implemented new regulations aimed at increasing transparency in real estate transactions, particularly regarding agent commissions. Previously, commission structures were often unclear to consumers, leading to confusion and, in some cases, dissatisfaction. The new rules require real estate agents to provide clear and concise disclosures about their commissions, including how they are calculated and who is responsible for paying them. According to Daniel Kianmahd, these changes are part of a broader effort to promote transparency and fairness in the real estate industry. By making commission structures more understandable, the DRE hopes to foster trust between agents and their clients, ensuring that all parties have a clear understanding of the financial aspects of a transaction. Impact on Real Estate Agents For real estate agents, the new commission rules present both challenges and opportunities. On one hand, the requirement for greater transparency means that agents must be more diligent in communicating with their clients about their fees. This could lead to more administrative work, as agents must ensure that all disclosures are made clearly and in compliance with the new regulations. Daniel Kianmahd believes that while this may initially seem burdensome, it ultimately benefits agents by fostering better relationships with their clients. "When clients understand how commissions work and see that their agent is being transparent, it builds trust," says Kianmahd. "Trust is essential in real estate, and these new rules can help agents establish a reputation for honesty and integrity." Effect on Buyers and Sellers The new commission rules are also expected to have a significant impact on buyers and sellers. For many, the real estate commission is a substantial part of the transaction costs, and understanding how it is calculated can affect their decisions. By requiring agents to disclose commission structures upfront, buyers and sellers can make more informed choices about which agents to work with and how to negotiate their deals.

2. Daniel Kianmahd notes that this increased transparency may lead to more competitive commission rates. As consumers become more aware of what they are paying for, they may seek out agents who offer better value or more favorable terms. "Competition is healthy for the market," says Kianmahd. "It encourages agents to provide better service and more competitive rates, ultimately benefiting consumers." Encouraging Negotiation Another significant aspect of the new commission rules is that they encourage negotiation between agents and their clients. In the past, commission rates were often seen as fixed or non-negotiable, but the new regulations make it clear that these rates can and should be discussed. Daniel Kianmahd emphasizes the importance of this shift, noting that it empowers consumers to take a more active role in their real estate transactions. "Negotiation is a vital part of any real estate deal," says Kianmahd. "These new rules give buyers and sellers more control over their costs, which can lead to better outcomes for everyone involved. It also pushes agents to demonstrate their value and justify their fees, leading to a more professional and client-focused industry." Preparing for the Future As the new commission rules go into effect, real estate professionals across California are preparing to adapt. Daniel Kianmahd advises agents to familiarize themselves with the regulations and to develop clear communication strategies for discussing commissions with their clients. He also suggests that agents consider the potential for increased competition and think about how they can differentiate themselves in the market. "For agents, this is an opportunity to stand out," says Kianmahd. "By being transparent and offering excellent service, agents can build strong, lasting relationships with their clients. The real estate market is always changing, and those who can adapt will thrive." Conclusion The new real estate agent commission rules in California represent a significant shift in the industry, promoting transparency, fairness, and competition. Daniel Kianmahd’s insights highlight the positive aspects of these changes, emphasizing the importance of trust and clear communication in real estate transactions. As buyers, sellers, and agents navigate this new landscape, the focus on transparency and negotiation is likely to lead to a more informed and empowered consumer base. With these changes, California continues to lead the way in real estate innovation, setting a standard that may well influence other markets across the country.