6 Things You Need to Know About Upcoming Changes to the Real Estate Industry
A Little Backstory:
Back in March, the National Association of Realtors (NAR) agreed to a settlement that’s shaking things up a bit in the real estate world. Along with a monetary settlement, NAR is rolling out changes designed to bring more transparency to how real estate agents get paid.
But what does this mean for you? Let’s break it down into two key changes you might hear about:
No More Compensation Offers on MLS: Offers of compensation for buyer brokers or buyer agents can no longer be displayed on the Multiple Listing Service (MLS).
New Agreement Requirements: Real estate agents are now required to have a written agreement with homebuyers before showing them any property.
These headlines might seem a bit daunting, but don’t worry—while there are a few new steps, most professionals in the industry are committed to providing the same excellent service you’ve come to expect.
To give you a clearer picture, here are six important things homebuyers and sellers should know about these changes coming on August 17, 2024:
What These Changes Mean for Homebuyers
#1—Homebuyer Agreements
Your real estate agent will now need to have a signed agreement with you before showing any homes. But don’t worry, this doesn’t mean you’re tied down forever! These agreements can be as short as one property, one week, or extend for a longer period.
When interviewing buyer agents, ask about the different agreement options available and make sure you’re clear on what services are included.
#2—Know What You're Paying For
This new agreement will outline exactly how your agent will be compensated. If anything is unclear, don’t hesitate to ask for specifics—and get them in writing before you sign.
And just like before, agent fees are still negotiable. This settlement hasn’t changed that!
#3—Seller Deals Still Exist
Good news for buyers—sellers can still offer to cover some of your closing costs and even the buyer agent fees as a sweet incentive.
While you won’t see these offers on MLS listings anymore, that doesn’t mean they’re off the table. Your agent can find out if the seller is offering buyer agent compensation—or negotiate for it when you decide to make an offer.
What These Changes Mean for Home Sellers
#1—The Power of Choice
You’re still in the driver’s seat! You get to decide whether or not to offer compensation to buyer brokers. When chatting with your listing agent, ask about the pros and cons of offering this compensation to help you make the best decision for your situation.
#2—Transparent Terms
Your listing agent must get your approval before making any payment offer to buyer brokers. If you choose to offer compensation, the terms must be clear, in writing, and detail how much and how it will be paid.
#3—MLS Dos and Don’ts
As a seller, you can no longer list offers of buyer broker compensation on the MLS. However, you can still offer buyer concessions like covering closing costs on the MLS.
Final Thoughts
These changes are all about making the process of agent compensation more transparent when buying or selling a home. With new options available, it’s essential to take the time to understand them fully. By partnering with a knowledgeable real estate agent, you can ensure that your home buying or selling experience remains smooth and successful.
For more details about these changes, visit facts.realtor or schedule a discovery session with us here.