Be Ready to Smile!
As you may have heard, the law suit involving the National Association of Realtors (NAR) was recently settled and as a result, there are some big changes coming to the Real Estate industry. The adjustments include new rules regarding agent representation and commission and are to go into effect on August 6th, 2024. These mandated changes are nation-wide and aimed at increasing transparency in real estate transactions. We at Bella Rosa Realty see this as a positive development for buyers, sellers, and agents alike.
This is a very general summary that will give you some highlights of what to expect.
BUYERS – Beginning August 6th, buyers will be obligated to sign a Buyer Broker agreement in order to view a listed property with their preferred representing realtor (also known as a “Buyer’s agent”). There are several options offered in this section of the agreement as to the length of that relationship (it could be a time limitation where the range is from one day to 3 months) or it could be a property-specific agreement.
Additionally, in this agreement, the compensation the buyer is willing to be obligated to pay their agent will also be outlined.
SELLERS – The new listing contract does not include a line item to offer a buyer’s agent’s commission as it did in the past. The new contract will only state what the seller has agreed to compensate the Listing Broker and any future concessions to the buyers side will be negotiated with the buyers offer. The sellers can expect the buyers to request the seller to pay the commission, but payment of it will ultimately be the buyer’s obligation.
IN CONCLUSION, these changes may be troublesome at first (as all changes are). “Buyer’s Agents” may be very concerned about being able to demand their much- deserved commission. We know Buyers and Sellers are not all going to react the same to these changes. There are over one million realtors in the U.S.A that are affected by these new rules and probably the majority of them are trying to come up with a plan to make these changes work for themselves and their clients.
Please be patient during this transition period. The feds made these changes to protect real estate buyers and sellers. They will figure out how to change things again if they see that too many buyers are running into trouble because of insufficient representation.
We’re here to help! For questions regarding these changes or to discuss the best strategies for buying or selling your home in this dynamic market, contact us.
Rosemary Woodward, Broker. 01131081 760.413.4470 [email protected]