If you still remember the NAR lawsuit, it already went into effect since last Saturday, August 17. And for buyers, “things are going to look a lot different now”, said James Rodriguez, senior real estate reporter on Business Insider’s Discourse team.
Simply put, you now need a signed buyer’s agency agreement in place to see a property. Whether it’s exclusive or non-exclusive, this written contract is mandatory before any property showing.
To be a bit more specific, before showing a client a single property, most real estate agents, those affiliated with the Realtor-controlled MLS, must now have their clients sign an agreement outlining the agent’s compensation.
This agreement will clearly state the agent’s fee, whether it’s a percentage of the purchase price, a flat rate, or an hourly charge. Importantly, the fee cannot depend on what the seller offers.
Once agreed upon, the agent’s commission cannot be increased without both buyer and agent consent. Any additional money offered by the seller must either be declined or passed on to the buyer.
While the NAR claimed buyers could negotiate commissions before the lawsuits, this new requirement is expected to make that process more common.
All in all, “it’s a huge behavior change for Realtors,” said Laura Ellis, an executive at Baird & Warner, a Chicago-area real-estate brokerage, especially when “it’s the biggest change in over 100 years.”
“The basic terms of a buyer-representation agreement should, in theory, be fairly simple to spell out: How much is the buyer going to pay, and for which services?”, James believed. Still, as complicated as it maybe, this new rule could save you lots of money.
More people start carefully picking their agents and negotiating for better deals. Plus, there are ways around paying agent fees upfront. While the casual house hunting might be over, a little extra effort could lead to big rewards.
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