The real estate brokerage industry is undergoing some significant changes, effective by August 17, 2024, due to a proposed settlement between the National Association of REALTORS® (NAR) and class action parties. Along with Gibson Sotheby’s International Realty, I am committed to guiding you through this new landscape.
Our agents have been rigorously trained on these updates and are ready with clear, concise client agreements and disclosures. We're here to protect and empower you every step of the way, whether you're buying or selling a home.
Key Changes and What They Mean for You:
1. Buyer Representation Agreements
Buyer Agents who are REALTORS® are now required to have a representation agreement with their clients before showing homes. This agreement outlines the relationship, services, and fees.
- For Sellers: With fewer Sellers offering Buyer Agent compensation, expect the Buyer Agent fee to be included in the offer, making it financeable.
- For Buyers: You'll have a clearer understanding of your agent’s fees, with better opportunities to negotiate. Existing clients will need to sign a new agreement.
2. Buyer Agent Compensation
Most MLSs will no longer publish Buyer Agent compensation. Sellers are not required to offer it, but they may choose to.
- For Sellers: Offering zero compensation is an option, but expect Buyers to include their Agent's fee in the offer. We will provide a Listing Agreement Addendum for properties not under agreement when the change occurs.
- For Buyers: Your agent will need to do more research to find compensation offers. Most Buyers will include their Agent's fee in the offer to ensure it's financeable.
3. Published Offers of Buyer Agent Compensation
Two MLSs in Massachusetts will continue allowing published offers of Buyer Agent compensation, but these offers now come from the Seller.
- For Sellers: This may expose you to legal liability and compensation disputes. Be aware of the risks.
- For Buyers: While these offers can attract Buyers, they are still negotiable and could change during the offer stage.
What Stays the Same:
Buying or selling a home remains a significant, often challenging event in life. Our agents continue to offer invaluable expertise and guidance, ensuring you have the support you need during this process.
If you have any questions about these changes or need help connecting with a lender or attorney familiar with them, I'm here to assist you. Let's navigate this together.
For more detailed information, the National Association of REALTORS® has released new “Consumer Guides” to help you understand these changes. Feel free to reach out if you'd like to learn more.
What about the recent decrease in interest rates? What does this mean to you when buying or selling your home? Read More Here
Thank You,
Dave Hunter
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