New Rules for Real Estate Transactions: What Buyers and Sellers Need to Know
Anya’s Market Bites:
The process of buying or selling a home is undergoing significant changes due to a recent class action settlement involving the National Association of Realtors. These changes are set to transform how commissions are handled during real estate transactions, with buyers and sellers now more directly involved in negotiations.
Key Changes to Expect:
Commission Negotiations: Under the new rules, the buyer and seller will now negotiate who pays the commission and how much will be paid. This marks a shift from previous practices where commission details were often pre-determined.
MLS Compensation Information: Real estate agents will no longer be able to view or rely on historical data for commission compensation on the Multiple Listing Service (MLS). This adds a layer of complexity to transactions, as agents will need to work more closely with clients to determine commission structures.
Increased Paperwork: With these changes, buyers and sellers will need to complete additional forms, making the transaction process more involved. This is especially true when visiting open houses, where buyers may need to sign forms and could be restricted from receiving detailed property information without agent representation.
Negotiating Agent Fees: Buyers will now need to negotiate the fees they are willing to pay their agents. However, sellers may choose to incentivize sales by covering all or part of the buyer’s agent’s commission, creating a new dynamic in the negotiation process.
Transparency and Anxiety: While these changes may initially seem daunting, they aim to increase transparency in real estate transactions. With more information available, it is hoped that buyers and sellers will feel more confident and less anxious about the process.
The long-term impact of these changes on commissions and the housing market remains uncertain. However, industry experts believe that these new rules alone are unlikely to significantly influence housing prices.
As these new practices take effect, it's important for both buyers and sellers to stay informed and work closely with their real estate agents to navigate the evolving landscape of real estate transactions.
(Source: ABC7)
All the best,
Anya Derebenskiy
(949) 942-5183
Oh, by the way…if you know of someone who would appreciate the level of service I provide, please call me with their name and contact information.
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