Two new rules from the NAR settlement can inspire better service to buyers.
What’s happening in real estate? Are Realtors or commissions going away? Do I need to buy or sell a property right now? These are only some of the questions we get asked daily, and the media isn’t helping. The media typically disseminate a lot of conflicting information about the settlement and a lot of inaccurate insights about what’s going to happen when these changes take place. We’re here to discuss two significant changes in real estate so you can be better informed about the situation.
The first change is that all buyers must sign a Buyer Representation Agreement with their real estate agent. The old process looks like this: If you were selling a home, you always had to have a listing agreement signed. If you were a buyer, you never had to have a signed agreement with your agent.
That all changed last August 17. Buyers are now required to have an agreement with their agent that spells out their expectations and what the agent expects of them. It also outlines the type of property you’re looking for in the areas you’re interested in and the amount of compensation the buyer’s agent will receive.
“This is a positive change for the industry.”
This is a positive change for the industry as it’s going to bring more transparency between agents and their buyer clients and elevate the level of service that buyers receive when searching for homes.
The second change is that the amount of the buyer agent compensation will no longer be listed in the MLS. Before, a buyer agent could look in the MLS to see how much compensation or professional fee was offered on a particular property. However, because of the settlement terms, posting buyer’s agent compensation will no longer be allowed.
Depending on your situation, there may be something else to consider, so the best thing you could do is to reach out to real estate professionals like us. Let’s have a conversation to see how these changes might affect you. Contact us at (916) 547-3615 for any questions or real estate needs.