07/29/2024
๐๐ฆ๐ฉ๐จ๐ซ๐ญ๐๐ง๐ญ ๐๐ก๐๐ง๐ ๐๐ฌ ๐ข๐ง ๐ญ๐ก๐ ๐๐๐๐ฅ ๐๐ฌ๐ญ๐๐ญ๐ ๐๐จ๐ซ๐ฅ๐: ๐๐ก๐๐ญ ๐๐ฎ๐ฒ๐๐ซ๐ฌ ๐๐ง๐ ๐๐๐ฅ๐ฅ๐๐ซ๐ฌ ๐๐๐๐ ๐ญ๐จ ๐๐ง๐จ๐ฐโฃโฃโฃ
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๐๐ซ๐๐๐ ๐ฒ๐จ๐ฎ๐ซ๐ฌ๐๐ฅ๐ฏ๐๐ฌโ๐ฆ๐๐ฌ๐ฌ๐ข๐ฏ๐ ๐๐ก๐๐ง๐ ๐๐ฌ ๐๐ซ๐ ๐๐จ๐ฆ๐ข๐ง๐ ๐ญ๐จ ๐ญ๐ก๐ ๐ซ๐๐๐ฅ ๐๐ฌ๐ญ๐๐ญ๐ ๐ฐ๐จ๐ซ๐ฅ๐ ๐ญ๐ก๐๐ญ ๐ฐ๐ข๐ฅ๐ฅ ๐ซ๐๐ฏ๐จ๐ฅ๐ฎ๐ญ๐ข๐จ๐ง๐ข๐ณ๐ ๐ก๐จ๐ฐ ๐ฐ๐ ๐๐ฎ๐ฒ ๐๐ง๐ ๐ฌ๐๐ฅ๐ฅ ๐ก๐จ๐ฆ๐๐ฌ...โฃโฃโฃ
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or maybe not?โฃโฃโฃ
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The real estate world is buzzing with some major updates that have everyone talking. The National Association of Realtors (NAR) has announced new policy changes, and if you're buying or selling a home, you need to know whatโs coming. There's been a whirlwind of speculation about how these changes will shake things up. I'm going to give my take and why I think they might not be as dramatic as many are making them out to be.โฃโฃโฃ
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First things first: what are the changes and when will they take effect? August 17, 2024 is the official date, though many changes are already rolling out.โฃโฃ
As for the changes:โฃ
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๐๐ก๐๐ง๐ ๐๐ฌ ๐๐จ๐ซ ๐๐ฎ๐ฒ๐๐ซ๐ฌโฃโฃโฃ
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1) ๐๐ซ๐ข๐ญ๐ญ๐๐ง ๐๐ ๐ซ๐๐๐ฆ๐๐ง๐ญ ๐๐๐๐จ๐ซ๐ ๐๐จ๐ฎ๐ซ๐ข๐ง๐ : From now on, buyers must sign a written agreement with their agent before touring any property. It might sound like extra paperwork, but itโs just to make sure everyoneโs on the same page.โฃโฃโฃ
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2) ๐๐จ๐ฆ๐ฉ๐๐ง๐ฌ๐๐ญ๐ข๐จ๐ง ๐๐ข๐ฌ๐๐ฅ๐จ๐ฌ๐ฎ๐ซ๐๐ฌ: Buyers will now have access to clear information about how brokers are compensated.โฃโฃโฃ
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๐๐ก๐๐ง๐ ๐๐ฌ ๐๐จ๐ซ ๐๐๐ฅ๐ฅ๐๐ซ๐ฌโฃโฃโฃ
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1) ๐๐จ ๐๐๐ช๐ฎ๐ข๐ซ๐๐ ๐๐จ๐ฆ๐ฉ๐๐ง๐ฌ๐๐ญ๐ข๐จ๐ง ๐๐๐๐๐ซ๐ฌ: Sellers are no longer required to make offers of compensation to buyer brokers in the MLS. This means you can offer any amount you want, including zero. But more on that in a bit.โฃโฃโฃ
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2) ๐๐ฅ๐ข๐ฆ๐ข๐ง๐๐ญ๐ข๐จ๐ง ๐จ๐ ๐๐จ๐ฆ๐ฉ๐๐ง๐ฌ๐๐ญ๐ข๐จ๐ง ๐
๐ข๐๐ฅ๐๐ฌ: All those pesky compensation fields and info will be gone from the MLS.โฃโฃโฃ
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3) ๐๐จ๐ฆ๐ฉ๐๐ง๐ฌ๐๐ญ๐ข๐จ๐ง ๐๐ข๐ฌ๐๐ฅ๐จ๐ฌ๐ฎ๐ซ๐๐ฌ: Just like buyers, sellers will also get clear disclosures about compensation arrangements.โฃโฃโฃ
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๐๐ฒ ๐๐๐ค๐ ๐จ๐ง ๐๐ก๐๐ฌ๐ ๐๐ก๐๐ง๐ ๐๐ฌโฃโฃโฃ
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There has been much sensationalizing of these changes from both those in and outside the real estate industry. However, I don't anticipate much of a departure from current practices. Though sellers will now be expressly informed about their ability to offer any amount (including zero) for buyer agent compensation, I believe most agents will continue to encourage sellers to offer this to increase exposure of a listing, particularly if the home would potentially be purchased by a first-time home buyer.โฃโฃโฃ
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As far as claims that this will only make purchasing more difficult for first-time home buyers who may be limited on the ability to come up with additional funds for compensation of a buyer agent, I don't believe this will generally be the case. Though the discussion about compensation must take place, there is nothing that prohibits a buyer's agent from asking about buyer agent compensation offered by the seller. The buyer can have the option to not make an offer on any property not offering a buyer agent commission where they would need to come up with additional funds out-of-pocket.โฃโฃโฃ
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That's it. While many have made these changes out to sound like a big deal, the reality is that these will likely be minor things that have been put in place to make agent compensation more transparent and straightforward for clients.โฃโฃโฃ
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As always, if you have any questions or need more information, feel free to reach out! โฃโฃโฃ
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Happy house hunting (or selling)!
