It’s been hard to escape the news, so you’ve probably heard about the recent updates impacting the real estate process.

How much will change in each state depends on what regulations or practices are already in place, but it’s clear that everyone will be adjusting to some new rules. If you’re planning to buy or sell a home and you need some straight answers about what to expect, the information presented here will help.

What’s changing?

For decades, home sellers typically paid their real estate agents a 5 or 6 percent commission based on the home’s selling price, which was then split between the seller’s agent and the buyer’s agent. Some believed that the potentially hefty commission was incorporated into a home’s asking price, making it artificially high. This led to several antitrust lawsuits, and while the National Association of Realtors® (NAR) argued in court that commissions have always been negotiable, it ultimately agreed to settle.

On August 17, the court’s preliminary approval of that settlement went into effect; final approval is scheduled for November 26. The two significant changes affecting homebuyers and sellers concern how agents are compensated:

1. For sellers: Agents who list a home on a multiple listing service (MLS) are no longer allowed to include a commission to buyer agents. If a seller agrees to compensate a buyer’s agent, they and their agent will need to come up with a figure and how they will present it.
2. For buyers: Before showing a home, an agent and a buyer will need to agree to how much money and in what manner the agent will be paid. (There are options buyers can discuss with their agents.) The buyer will be required to sign an agreement that details these terms and the services the agent will provide.

These new rules provide for increased clarity and greater opportunity to negotiate agents’ commissions.

What do these changes mean for you?

As a buyer or seller, you can expect a more transparent experience thanks to the implementation of these and other specific practices/rules:

• Enhanced disclosure requirements: Agents are now required to provide more detailed information about their relationships with sellers, buyers, and other parties involved in a transaction. This ensures that everyone has a complete understanding of any potential conflicts of interest.
• Standardized contract forms: The use of standardized contract forms will help to prevent misunderstandings and disputes. They’ll be regularly updated to reflect changes in laws and regulations.
• Increased consumer protection: The new rules are designed to protect buyers and sellers from unfair practices, such as misleading advertising and undisclosed fees. If you do feel that you have been treated unfairly, you’ll have more options for recourse.

The value of a trusted real estate advisor

Buying or selling a home can be a complicated, emotional, and, ultimately, rewarding process, and a real estate agent can be a valuable asset in today’s complex market. By staying informed about the latest regulations and industry trends, agents can provide guidance and support throughout the journey. From understanding your unique needs to navigating the intricacies of contracts and negotiations, a qualified agent can help ensure compliance, provide expertise, streamline the process, and protect your interests.

If you have any questions or concerns about the new regulations or an upcoming real estate transaction, don’t hesitate to reach out.

By working with a trusted real estate agent, you can increase your chances of a successful and stress-free homebuying or selling experience.