You might have heard some whispers about changes in the real estate world. Back in March, the National Association of Realtors (NAR) made a big deal, agreeing to change some of the ways things have always been done. Now, those changes are kicking in on August 17th, 2024. But what does this all mean for you, whether you're buying or selling a home? Let's break it down.
The Backstory
Basically, the NAR is trying to make things more transparent, especially when it comes to how real estate agents get paid. This led to two big changes you need to know about:
No more advertising agent fees on the MLS: Sellers can't publicly announce on the Multiple Listing Service (MLS) how much they're willing to pay the buyer's agent.
Written agreements before house tours: Your agent needs to have a signed agreement with you before they can start showing you properties.
At first glance, this might sound like a lot of hassle. But the truth is, most agents will still provide the same great service they always have. It's just that some of the paperwork and behind-the-scenes stuff is getting a makeover.

What Homebuyers Need to Know
The Homebuyer Agreement: Think of this as a "dating contract" with your real estate agent. It outlines what services they'll provide and how they'll get paid. Some agreements are short-term (for one property or a week), while others last longer. Make sure you understand what you're signing and that it feels right for you.
Know Your Costs: This agreement will spell out how your agent is compensated. If anything is unclear, ask questions and get it in writing before you sign. Remember, agent fees are still negotiable, just like before.
Seller Deals Are Still a Thing: Sellers can still sweeten the deal by offering to cover some of your closing costs or even your agent's fees. You just won't see these offers advertised on the MLS anymore. Your agent can find out if the seller is offering any incentives or can even negotiate for them.
What Home Sellers Need to Know
You're Still in Charge: You get to decide if you want to offer compensation to the buyer's agent. Talk to your listing agent about the pros and cons to figure out the best strategy for your situation.
Transparency is Key: If you decide to offer compensation to the buyer's agent, it needs to be clear and in writing. This includes the amount and how it'll be paid. Your listing agent needs your approval before making any offers.
MLS Changes: You can't advertise offers to buyer agents on the MLS anymore. But you can still offer other buyer incentives, like help with closing costs.
The Bottom Line
These changes are all about making the real estate process more transparent, especially when it comes to agent fees. There will be different options available, so it's important to understand them. A good real estate agent will guide you through it all and make sure you have a smooth and successful experience, whether you're buying or selling.
Have questions about the new rules or how they might affect you? Let's chat!
Guiding you through the home journey.
Rick & Angela Holt
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