New Commission Rules Are Here: What You Need to Know
This past Friday, new rules impacting real estate agents and MLSs across the country went into effect, marking a significant shift in how commissions are handled in real estate transactions. These changes stem from a recent settlement with the National Association of Realtors (NAR) and have introduced several key regulations that will affect both agents and clients alike.
Key Changes to Be Aware Of:
No More Advertising Buyer's Agent Commission:
Agents are now prohibited from advertising the commission that will be paid to the buyer's agent as part of the deal. This means that buyers will no longer see upfront what their agent will earn from the transaction.Separation of Listing and Selling Commissions:
Listing and selling commissions can no longer be combined into a single percentage. Each must be clearly stated and negotiated separately.Mandatory Buyer Agency Agreement:
Before showing any properties, agents must now have a signed buyer agency agreement with their clients. This agreement will outline what the buyer’s agent is charging for their services.Negotiating Buyer's Agent Commission:
While the buyer's agent commission must be disclosed upfront, it can still be negotiated as part of the deal when making an offer.
What This Means for You
These are monumental changes that will impact everyone involved in real estate transactions. We are just entering the early stages of this new landscape and are committed to navigating it to provide the best possible service to our clients.
If you have any questions about these new rules or would like to discuss buying or selling a property, please don’t hesitate to reach out. You can reply to this post, or call/text us anytime.
