Part 1: Understanding the Latest Changes in the Real Estate Industry

Hey there, future homeowners and sellers! (and anyone else that’s interested in knowing what the big buzz around real estate is lately)

If you’re diving into the real estate market, it’s crucial to understand some recent changes that impact how transactions work. There’s a lot of confusion and misinformation out there and it’s important to simplify what the rules are and why they matter.

Two Key Changes:

Please note that these changes are mandated by NAR (National Association of REALTORS) and affect real estate at a national level, no matter where you live.

1. Prohibition of Offers of Compensation on MLSs:

• • What’s Changing? The field for offers of compensation will no longer appear on MLS platforms (Multiple Listing Services). This doesn’t mean sellers aren’t offering compensation to buyer’s agents or that buyers will have to pay it.
  • Why It Matters? This change moves the conversation about commissions off the MLS, making the process more transparent for all parties involved.

2. Requirement for a Written Agreement with Buyers:

• • • What’s Changing? Agents must now enter into a written agreement with buyers before touring homes.
    • Why It Matters? This agreement clarifies the roles, expectations of both parties, and clarifies compensation for Buyer’s agent (how much, who pays and where compensation comes from), ensuring mutual understanding before any property viewings start.

How These Changes Benefit You

These changes aim to bring more transparency and clarity to the real estate process. Understanding these rules will help you navigate transactions more confidently, whether you’re buying or selling a home. It’s important to ask questions,  do research and really understand the process.  We’ve always prided ourselves on really explaining and educating our own customers but understand the industry as a whole may need more clarity.  With that said, we are here to clarify any doubts you may have.

What’s Next?

Stay tuned for Parts 2 and 3, where we’ll dive deeper into what these changes mean for you as a buyer and as a seller. We’ll explore how to navigate these new rules and ensure you’re making the most of your real estate transactions. Until then, happy house hunting and selling!

To read other parts: