Upcoming Changes in Real Estate: What You Should Know
Here’s what you need to know about recent changes in real estate practices:
In March, the National Association of Realtors (NAR) reached a settlement that introduces new guidelines aimed at enhancing transparency around how real estate agents are compensated.
What does this mean for you? Two key updates:
Offers of compensation for buyer brokers or buyer agents will no longer be made on the Multiple Listing Service (MLS).
Agents are now required to have a written agreement with a homebuyer before showing any properties.
While these changes might seem daunting, the core services provided by real estate professionals remain the same. Here’s what homebuyers and sellers need to know as these changes take effect on August 17, 2024.
For Homebuyers
1. Homebuyer Agreements:
Before touring homes, you'll need to sign a written agreement with your agent. This isn’t a long-term commitment; agreements can vary in duration and scope. Discuss your options with your agent to ensure you’re clear on the services provided.
2. Understanding Compensation:
Your agent’s compensation will be clearly outlined in the agreement. If you have questions, ask for clarification and ensure everything is documented. Remember, agent fees are still negotiable, just as before.
3. Seller Incentives:
Sellers can still offer to cover certain costs, including buyer agent fees. While these offers won’t appear on MLS listings, your agent can help identify or negotiate such incentives when making an offer.
For Home Sellers
1. Your Choice:
You retain control over whether to offer compensation to buyer brokers. Discuss with your listing agent the pros and cons to make an informed decision that suits your needs.
2. Clear Terms:
Any offer of payment to buyer brokers must be approved by you and documented in writing. Transparency is key—ensure you understand the terms, including the amount and payment method.
3. MLS Guidelines:
While you can no longer list offers of buyer broker compensation on the MLS, you can still offer other concessions, like covering buyer closing costs.
Final Thoughts
These changes are designed to create a more transparent process regarding agent compensation. By staying informed and working with a knowledgeable real estate agent, you can navigate these updates smoothly and continue to enjoy a positive home buying or selling experience. For more information about these changes, visit facts.realtor or schedule a discovery session with me by emailing featherandfernrealtyco@gmail.com
