As a result of the National Association of REALTORS® settlement, there are certain practice changes that go into effect for REALTORS® on August 17th, 2024. While these are required practice changes for REALTORS®, these changes will affect how consumers buy and sell real estate moving forward.
What do buyers and sellers need to know when transacting business after the deadline?
For starters, it is important to understand that real estate commissions have always been negotiable and they will continue to be negotiable. Starting on or before August 17th, we will provide buyers and sellers with better forms and tools for negotiating commissions and sharing commissions with other brokers. The process will be much more transparent, which is good for everyone.
Here is what home buyers need to know:
Beginning on August 17th, buyers will be required to enter into a written agreement with their buyer broker before they can tour any homes.
- You will be required to sign a written agreement with your agent before touring a home. There are several different agreements available depending on your situation. Please discuss with your agent which agreement is best for you.
- Our written agreements apply to both in-person and live virtual home tours.
- You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services.
- Sellers may offer to compensate your agent and you will have the opportunity to negotiate this with sellers when making an offer to purchase. However, offers of compensation are no longer displayed in our MLS. In most cases your agent should be able to find out if a seller is offering compensation to buyer brokers.
- You can still accept concessions from the seller, including offers to pay your closing costs.
Here is what home sellers need to know:
Listing brokers can no longer make offers of compensation to buyer brokers through the MLS.
- You still have the choice of offering compensation to buyer brokers. This can be a valuable tool when marketing your home and negotiating with buyers.
- While you can still make offers of compensation to buyer brokers, your listing agent cannot include that offer in the MLS. However, there are other ways your agent can communicate offers of compensation, including on their brokerage website.
- Our new listing agreements will include all the options for compensating your agent and offering buyer broker compensation. Your agent will review the listing agreement with you and help you decide which options are the best for you.
- You can still offer buyer concessions within the MLS or otherwise. Please note, a concession is different than buyer broker compensation. Buyers can decide how they want to spend their concession, including compensating their broker. This can be another valuable tool when marketing your home and negotiating with buyers.
Here is what hasn’t changed:
Commissions are still fully negotiable and your REALTOR® is obligated to have clear and transparent discussions with you about compensation.
- Agents who are REALTORS® are here to help you navigate the process of buying or selling real estate, and are ethically obligated to work in your best interest.
- Compensation for your agent remains fully negotiable, and if your agent is a REALTOR®, they must abide by the REALTOR® Code of Ethics and have clear and transparent discussions with you about compensation.
- You have choices. Work with your agent to understand the full range of these choice when buying or selling a home.
For more information about these industry changes please read these posts:
The Truth About The National Association of REALTORS® Settlement
