Written by: Casey Lund

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HONOLULU (HawaiiNewsNow) - A landmark $418 million settlement with the National Association of Realtors will change the way people buy and sell homes. Consumer advocates say it will create more transparency in the home buying process and improve the way Realtors disclose their commission to the home buyer.

“While this settlement may change some ways we do business, our commitment to support our members and serve as housing advocates, good neighbors and community builders remain,” Honolulu Board of Realtors CEO Suzanne Young said, in a statement released shortly after the settlement became public.

“Nearly 90% of home buyers and sellers choose to work with a Realtor and we’re confident consumers will continue to see the value in working with an agent to guide them.”

Under the terms of the settlement, sellers would pay smaller commissions and could keep more of the proceeds from sales. Home buyers would have more of a say in how much their agents are paid.

“Sometimes you sit down with a client on a listing appointment, and they go through the whole process and they understand things a bit more transparent and allow for more negotiation. That is where I think the big change is going to come and I think it’s a good thing,” said Bill Ward, a Realtor on the North Shore.

The National Association of Realtors also agreed to make a rule that would require MLS agents or any other parties working with a homebuyer to enter into a legal agreement with them.

The settlement is expected to be signed by a judge sometime in July.