Navigating the real estate market can be a complex journey. Still, recent changes brought about by the National Association of REALTORS® (NAR) settlement aim to provide more clarity and transparency for both home sellers and buyers. Here’s what you need to know about these changes and how they can benefit you.
For Home Sellers
As a home seller, you have even more control and options when listing your home. Here’s a breakdown of the key points from the NAR settlement:
1. Choice in Buyer Broker Compensation: You can offer compensation to buyer brokers to make your home more attractive to potential buyers. However, this is not mandatory.
2. Mandatory Disclosure and Approval: Your agent must disclose any payment or offer of payment to another broker acting for buyers. This disclosure must be in writing and approved by you in advance, ensuring transparency in all transactions.
3. Off-MLS Advertising: If you decide to offer compensation, it cannot be included in a Multiple Listing Service (MLS). Instead, your agent can promote your listing via alternative platforms such as social media, flyers, and websites.
4. Buyer Concessions on MLS: You can still offer buyer concessions, like covering closing costs, on an MLS to attract buyers.
These changes are designed to increase transparency and give you more control over the selling process. Remember, if they are a REALTOR®, your agent is committed to working in your best interest and must adhere to the REALTOR® Code of Ethics. Always discuss and negotiate compensation details clearly with your agent to ensure you make informed decisions.
If you have any questions or need further information on how these changes affect you as a seller, contact Coldwell Banker Village Properties and our expert team. We are here to provide you with the best advice and support.
For Home Buyers
Buying a home is a significant financial decision, and the new NAR settlement includes several changes to enhance your buying experience:
1. Written Agreement Requirement: Before touring homes, you must sign a written agreement with your agent. This agreement should clearly outline the services provided and the compensation terms. Make sure you fully understand and agree with these terms before signing.
2. Detailed Compensation Disclosure: The agreement must specify the exact amount or rate of compensation your agent will receive, ensuring transparency. It should also state that the compensation is negotiable and not set by law.
3. No Hidden Fees: Your agent cannot receive compensation exceeding the agreed amount. This provision protects you from unexpected costs.
4. Seller’s Offer of Compensation: While sellers can still offer to compensate your agent, these offers cannot be shared on an MLS. This ensures that compensation details are transparent and negotiated directly between you and your agent.
5. Continued Buyer Concessions: You can still receive concessions from the seller, such as assistance with closing costs, which can help reduce your out-of-pocket expenses.
Like sellers, buyers also benefit from increased transparency and more apparent negotiations regarding agent compensation. Your agent is there to guide you through the process, adhering to ethical standards and ensuring your best interests are prioritized.
Contact Coldwell Banker Village Properties and our expert team for personalized advice and guidance through these changes. We are dedicated to helping you make the best decisions for your home-buying journey.
Making Informed Decisions
Whether buying or selling, it’s crucial to work closely with your REALTOR® to understand the full range of options available. These new practices, effective from August 17, are designed to provide clarity, fairness, and transparency in real estate transactions. For more detailed information about these changes, visit facts.realtor.
By staying informed and engaging with your agent, you can confidently navigate the real estate market, making the best decisions for your unique needs and circumstances. Contact Coldwell Banker Village Properties and our expert team for any questions or consultations. We are here to support you every step of the way.