fbpx
Helping buyers make sense of upcoming changes
Upcoming changes in real estate transactions are imminent following the resolution of significant class action lawsuits involving sellers and the National Association of REALTORS� along with numerous leading real estate firms nationwide. These changes will have implications for sellers, buyers, and agents alike. There has been a lot of news coverage in the past few […]
Helping buyers make sense of upcoming changes
Upcoming changes in real estate transactions are imminent following the resolution of significant class action lawsuits involving sellers and the National Association of REALTORS� along with numerous leading real estate firms nationwide. These changes will have implications for sellers, buyers, and agents alike. There has been a lot of news coverage in the past few […]

5c299f28-29de-4308-bff3-9d6bfec83198.jpg

Upcoming changes in real estate transactions are imminent following the resolution of significant class action lawsuits involving sellers and the National Association of REALTORS� along with numerous leading real estate firms nationwide. These changes will have implications for sellers, buyers, and agents alike.

There has been a lot of news coverage in the past few weeks but unfortunately, much of it has added to the confusion on how things will change rather than clarify it.

It was reported that since the seller will most likely be paying only their commission, the price of homes will come down. That is very unlikely to happen. The value of a home is not determined by whether a commission is paid nor the amount of it.

In the terms of the settlement, which is still to be approved by a court, the change will go into effect on August 17, 2024 but some companies will implement the changes earlier. The following excerpts are taken from the NAR Settlement Fact Sheet.

  • MLS participants acting for buyers would be required to enter into written agreements with their buyers before touring a home.
  • Compensation continues to be negotiable between agents and the consumers they serve.
  • Selling brokers must clearly state compensation offers to buyers’ brokers on each listing, which may vary and can even be zero.Compensation offers may not be communicated through the MLS.
  • The types of compensation available for buyer brokers would continue to take multiple forms, depending on broker-consumer negotiations, including but not limited to:
    • Fixed-fee commission paid directly by consumers
    • Concession from the seller
    • Portion of the listing broker’s compensation
  • The settlement expressly provides that sellers may communicate seller concessions � such as buyer closing costs � via the MLS provided that such concessions are not conditioned on the use of or payment to a buyer broker.

It is important for buyers to understand that in the many forms of buyer representation agreements that exist throughout the United States, there will be a provision stating the buyer’s agent fee for the transaction. In the past, the most common way the fee was handled was through an agreement that the seller would pay a specific amount to the buyer’s agent or that the listing fee would be shared with the buyer’s agent.

The market will be in a state of uncertainty as to the different ways the buyer’s agent will be compensated. The most common ways would be:

  1. The seller will offer cooperative compensation.
    1. If the fee was less than stated in the buyer rep agreement, the buyer will be responsible for the difference.
    2. If the fee was more than stated in the buyer rep agreement, without exceptions addressing this specific condition, the buyer will have some options such as receiving it as a rebate at closing.
  2. If the seller was not offering cooperative compensation, the buyer would cover it personally.
  3. The buyer could direct their agent to only show houses whose seller is offering cooperative compensation.
  4. Direct the buyer’s agent to negotiate in the offer to purchase agreement that the seller pays the buyer’s agent fee.

Consistently, almost 90% of homebuyers have chosen to collaborate with a real estate agent or broker, a trend expected to persist. Despite the rise of digital research and transactions, the obvious value provided by REALTORS� endures, with nine out of ten homebuyers expressing satisfaction and a willingness to recommend their agent to others.

National Association of REALTORS� members will remain steadfast partners for the countless Americans pursuing the dream of homeownership, providing reliable support and guidance along the way.

For more information and another viewpoint, see this Fortune.com article published April 3, 2024. Download a copy of 105 More Ways agents who are REALTORS� are worth every penny of their compensation.

LIST OF BLOGS

Marketing Your House to Homebuyers

Marketing Your House to Homebuyers It's necessary that you pay unique attention on marketing your home to property buyers when you desire to offer your home. Marketing is the method to get individuals observing that you're attempting to offer a home! For...

Some Basic Steps In Buying Real Estate (2 )

Some Basic Steps In Buying Real Estate You might have been becoming aware of how the present economy is materializing estate a purchaser's market, however do you understand how to utilize this to your benefit? This short article has suggestions on how to approach...

3 Bad Reasons For Needing A Mortgage Lender

3 Bad Reasons For Needing A Mortgage Lender Everybody informs you you're going locations, and of course, you think them. You get a six-digit pay monthly. Do all these indicate you should get a home? Home loan providers would be the very first to inform you owning a...

Georgia realty

Georgia property Beginning Georgia realty hunt with a realty representative No marvel you have actually chosen on selecting up Georgia genuine estate for living-in or investing. Your Georgia genuine estate hunt can rather quickly begin with looking for the genuine...

Realty management

Realty management Realty management companies-- making life much easier You might invest in genuine estate since you require a home for yourself (that home of your dreams that you so severely desire). You might utilize genuine estate as a way for supplementing your...

Offering Real Estate – Tips And Infomation That Helps 3

Offering Real Estate - Tips And Infomation That Helps Offering a home can be among the most greatest choices an individual can make in life. That is why it is really vital that you are informed on the subject. In the following short article, you are going to be...

Las Vegas realty

Las Vegas realty Las Vegas property-- What's up? Is Las Vegas genuine estate truly a terrific genuine estate financial investment choice? All those advancements integrated with the reality that Las Vegas is what Las Vegas is, have actually made Las Vegas genuine...

Tips For Finding The Home Of Your Dreams (3 )

Tips For Finding The Home Of Your Dreams When it comes to acquiring genuine estate, there is so much to discover. This is why it is useful to find out as much as you can about purchasing property before you make your choice. When believing about the type of genuine...

Send Your Child to College FREE!

Send Your Child to College FREE! College is one of the biggest costs through the course of your kid's life. Capitalistic America has actually offered numerous methods to send your kid to college without paying a single red cent. Home near college schools has actually...

2 Secrets To Selecting The Right Hawaii Vacation Rental

You've chosen that you desire to go the holiday rental path for various factors: personal privacy, expense, place and convenience efficiency. Next, you most likely Googled Oahu Vacation Rentals and are faced with the overwhelming job of picking amongst some 175,000...

RECENT POSTS

Georgia realty

Georgia property Beginning Georgia realty hunt with a realty representative No marvel you have...

Realty management

Realty management Realty management companies-- making life much easier You might invest in...

Las Vegas realty

Las Vegas realty Las Vegas property-- What's up? Is Las Vegas genuine estate truly a terrific...

ABOUT  TWENTY
THREE HOMES

The Twenty Three Homes are one of the premiere real estate groups locally, nationally and internationally, specifically dealing with high-end properties and exclusive clientele. Partner with Keller Williams Twenty Three Homes are full service real estate experts whose clients benefit from the custom tailored, hands on service while receiving all the exclusive amenities and resources of one of the most established and respected firms in the business.

GET IN TOUCH