The real estate landscape is undergoing significant changes, and we want to ensure you're well-informed about these critical updates.
So, what's the big deal?
In a nutshell, a recent legal settlement has changed some major rules about how real estate agents work with buyers and sellers, and how they get paid.
We have summarize this in 4 easy to understand bullet points for you:
Change #1: The Buyer Representation Agreement is a Must
Starting August 17th, 2024, Buyer Agents that are REALTORS® can't just show you any old house anymore. They now have to have a signed representation agreement with you before you go house hunting. Think of this agreement as your roadmap, outlining the agent's responsibilities, the services they'll provide, and, yes, how they'll get paid. It's all about transparency and setting clear expectations right from the start.
Change #2: No More One-Stop Commission Shop
In the past, the seller's agent's brokerage would typically pay the buyer's agent's commission. Not anymore. Now, the seller pays their listing agent directly, and the buyer is responsible for paying their agent. It's called "decoupling of compensation," and it's a big deal. Biggest change for the Real Estate Industry in decades..
Change #3: Sellers Have More Say
You now have more control over how much (or even if) you want to pay the buyer's agent. Everything is negotiable, so you can set terms that make sense for your situation.
Your listing agent will be able to guide you based on market conditions, price band your property falls under, how long you wish to be on the market, how many offers you wish to receive etc…what your best strategy should be.
Expect the Buyer Agent fee to be included in the offer, making it financeable.
Change #4: Buyers Have More Choices
Buyers, you're not left out in the cold. You can now negotiate directly with your agent on how they'll get paid. You can pay them upfront, roll the commission into your mortgage, or set up a separate payment plan. Sellers are not required to offer it, but they may choose to. Most Buyers will include their Agent's fee in the offer to ensure it's financeable.
The point is, you have options and you know exactly what you're paying for. We strongly recommend for anyone looking to purchase a home to start by interviewing 3 buyer agents and reviewing carefully their services, terms of contract and fees, this can be done in person or online, don’t skip this step if you want a successful buying journey.
Existing clients will need to sign a new agreement with their REALTORS® effective inmediately.
What Does This All Mean for You?
Whether you're buying or selling, these changes mean you need to be extra prepared.
Sellers, think carefully about how you'll handle agent compensation. Your listing agent should be presenting you with 3 different case scenarios and a Net Sheet that illustrates those for clear understanding.
Buyers, get ready and prepared on understanding how to structure how to pay for your agent fee and before you sign a contract with an agent make sure you’ve interviewed several.
Let's face it:
Buying or selling a home is a big deal. It's exciting, it's stressful, it's a rollercoaster of emotions. And even with all the technology in the world, it's still a complex process with a lot of moving parts.
That's where we come in. Our experienced agents at ALANTE Real Estate are here to guide you every step of the way, offering expert advice, personalized support, and a steady hand when you need it most, we're all about clear communication and making sure you feel confident and empowered throughout your real estate journey.
Because even though the real estate world is constantly evolving, one thing remains the same: you deserve a smooth, successful experience.
Have questions? Please give us a call, we would love to help you navigate this changes.
NOTE: The National Association of REALTORS® has released new “Consumer Guides” to help you understand these changes. READ MORE HERE
