Whether you realize it or not, you're in the middle of an epic shift that is shaking up the real estate world as we know it. Yep, we're talking about the National Association of Realtors (NAR) lawsuit. I know, I know, lawsuits don’t exactly scream “fun,” but stick with us here because the changes coming our way are worth the buzz.
First off, let’s set the scene. NAR is a big deal in the real estate world. On a national level, they set the standards, they make the rules, and they’ve been the go-to for all things property-related. Most Realtors you know are members of NAR, which keeps us accountable to best practices and ethical standards. But recently, NAR's been under the microscope, and not in the “let’s find your best angle” kind of way. We're talking transparency and disclosure changes, which will flip the way we do business on it's head and force us all to raise the bar.
Here are the 2 changes, coming August 17th, 2024:
1. All buyers must have a written agreement with an agent before touring a home
2. The Multiple Listing Service (MLS) will no longer include offers of compensation (agent commissions)
Seems simple, right? Well, not so fast. Behind the scenes agents and brokerages are working on the deep-rooted ramifications and process solutions for these changes. The trickle-down effect is huge, and will uproot decades of how we've shown homes, and negotiated contracts on behalf of both buyers and sellers. Messy will be our new normal for a while, but the countdown is on, and here’s what's in it for you:
Transparency Galore
One of the biggest shifts we’re looking at is transparency. The real estate world is about to get a whole lot clearer. We’re talking more information at your fingertips, more insight into the buying and selling process, and a better understanding of where your money is going. No more foggy details—just clear, crisp, and honest communication.
Commission Overhaul
Yep, the way commissions work is on the chopping block. Whether you’re a home buyer, seller, or agent, these changes aim to create a more balanced playing field. In the past, sellers took on the burden of paying both agents' commission, while buyers simply budgeted for their purchase and fees associated with the home sale itself. Going forward both buyer and seller will choose how their agents will get paid. Some buyers may roll the commission into the purchase price, others might rather pay their agent directly. And one thing we know for sure, each sale will pose a different set of circumstances and ripe for negotiating by all parties. Choice is a beautiful thing!
Empowered Buyers and Sellers
Last but definitely not least, these changes are all about empowering YOU. Buyers and sellers are going to have more control and more say in the process. We're not here to tell you how it's done. We're here to give you options, talk you through the pros and cons of each choice, and advise based on your specific goals.
Cheers to a future of transparency, fairness, and whole lot of messy in the middle! We're here for it, but it's complicated. Have a question about how (or if? or when?) to pay your agent? Or when is the right time to sign a buyer agreement? We've got all the answers, just connect with PHG here.
