US Real Estate Rule Changes are here. What you need to know:

Open doors for new rules in the US residential real estate market?   (Photo: retro renovation)

The National Association of Realtors (NAR) is mandating significant changes to residential real estate
​practices across the United States, effective August 17, 2024. The key changes:

COMPENSATION OFFERS

Previously, home sellers would typically offer a commission to the buyer's agent through the property database Multiple Listing Service or MLS. This practice is no longer allowed. Instead, compensation for buyer's agents has to be negotiated outside of the MLS for each property.

WRITTEN AGREEMENTS FOR BUYERS

Buyers must sign a written agreement with their real estate agent, latest before touring homes. This agreement will outline the services the agent provides and how he/she will be compensated, as well as outline the obligations and committment of the buyer.

CHANGES TO MLS LISTINGS

The MLS will remove all fields related to broker compensation. This means that information about buyer's agent commissions will no longer be visible in property listings. Instead, it will have to be verified for each listing separately (which might increase the work load for a buyer's broker substantially).

THE IDEA BEHIND  THE CHANGES

For increased transparency, real estate agents will be required to clearly disclose their compensation to both buyers and sellers. This aims to let consumers understand how their agents are being paid and give them more opportunity to negotiate commissions. One likely consequence: As real estate agents can't afford to work without pay, buyers' agents will most likely not begin to work with a buyer until it is agreed in writing who pays their commission.

WHAT THIS MEANS FOR YOU

If you're buying a home, you will need to discuss compensation with your agent upfront and sign an agreement – likely at the time when you are asking your agent to begin a home search with your criteria. If you are selling, you will no longer be able to offer compensation to buyer's agents through the MLS, but you can still negotiate these terms separately.

More details? Any questions? Please contact Tobias anytime for an individual, free and no-obligation consultation via videochat or phone: KaiserAssoc {at} gmail.com or (+1) 954 834 3088

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© by Tobias Kaiser, CC BY-NC-ND