What to Expect from the New Real Estate Industry Rule Changes
What are the new changes for homebuyers and sellers?
As a result of the recent settlement, there are only two changes that are taking effect this month. The first change is that offers of compensation can no longer take place on the MLS. Additionally, buyers working with an MLS purchase must sign a written buyer’s agreement. This requirement is already in place in roughly 20 states.
Will agents now ask for a specific commission or other fees?
According to the settlement terms, the compensation structure will be spelled out. Agents will present options to buyers on how they are compensated, which could include a flat fee model or negotiations with the seller. Buyers will have the control to decide on their preferred method and come to an agreement with their agent on the compensation structure.
Will sellers now decline to make an offer of compensation to a buyer’s agent?
While it’s possible, many sellers may still choose to offer compensation to buyer’s agents, as it’s a personal decision. Commissions are negotiable, and the seller can decide whether or not to offer compensation. Agents and sellers will have a discussion about the benefits of offering compensation to find the best course of action.
Are we likely to see lower commissions?
It’s too early to say for certain, but the new rules may lead to a shift in the way agents are compensated. Homebuyers will need to decide what value they place on having a trusted professional represent them and guide them through the process.
How do you expect these rule changes to affect real estate agents in the long-term?
For experienced and professional agents, this is a new challenge to navigate. However, some agents who have primarily been part-time or have limited experience may find it more difficult to adapt to the changes.
FAQs
Q: What is the purpose of the new rule changes?
A: The new rules aim to increase transparency around agent compensation and provide more control to buyers and sellers.
Q: How will the new rules affect real estate agents?
A: Experienced agents can adapt to the changes, but some part-time or less experienced agents may struggle to adjust.
Q: Will agents still offer commission to buyer’s agents?
A: Yes, it’s possible, but ultimately, it’s a decision between the agent and seller.
Q: Will commissions decrease as a result of the new rules?
A: It’s unclear, as it will depend on how agents and sellers negotiate compensation.
