Navigating the New Real Estate Rules: What Buyers and Sellers Need to Know for 2024?

The recent NAR lawsuit settlement is bringing some big changes to the real estate industry that everyone should know about:

 

Compensation Transparency: Starting August 17, MLSs (Multiple Listing Services) will no longer show fields for broker compensation. This means that listing brokers and sellers won’t be required to offer compensation to buyer brokers through the MLS. The idea is to make the process more transparent and straightforward.  Commissions have always been negotiable, but now each buyer and seller will have an agreement in place spelling out, who is paying who.

 

Written Agreements with Buyers: If you’re working with a real estate agent to buy a home, you’ll need to sign a written agreement with them before touring any properties. This doesn’t mean you have to pay them right away, but it does clarify what you can expect from each other. This aims to ensure that buyers understand their agent’s role and compensation from the start​ (www.nar.realtor)​​ (RealEstateNews.com)​.

 

Disclosure of Compensation: Agents will now be required to disclose their compensation details to both sellers and buyers. This increased transparency ensures that everyone involved in the transaction is fully aware of how agents are getting paid​

 

Impact on Buyers: Traditionally, the seller’s side covered the buyer agent’s commission. With these new rules, buyers might need to directly negotiate and pay for their agent’s services. This change could make it more challenging for first-time or less affluent buyers to afford proper representation, potentially making buyer agents more of a luxury service​. 

 

Timeline for Changes: These new rules are set to take effect on August 17, 2024. Realtor-owned MLSs need to comply by this date, while non-Realtor MLSs that choose to opt-in have until September 16, 2024.

 

These changes are meant to bring more clarity and fairness to the market, but they also introduce new dynamics for both buyers and sellers to navigate. If you’re planning to buy or sell a home, it’s a good idea to chat with your real estate agent about how these changes might affect you.  I’d be happy to discuss.

Mungia Real Estate

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