Changes are coming to common real estate practices. Find out what they are before you buy or list a home for sale.
If it’s been some time since you bought or sold a home, there are recent changes to the selling process you need to be aware of. These are part of nationwide changes from the National Association of Realtors® (NAR) and how homes are promoted in Multiple Listing Services (MLS) – regional databases across the country that compile information about homes for sale and sold, as well as rental properties that use an agent during the leasing process. Updates are designed to give consumers a better understanding of how they can negotiate fees associated with buying or selling a home and will take effect August 14.
It’s important to know that in our region Realtors® have been following these practices for decades, allowing for a clear and fair sales process that encourages both buyers and sellers to have their own representation in a sales transaction and negotiate their agent’s fee for service. What has changed is that a broker’s fee is not only more clear to the buyer but can now be a potential negotiating item of the buyer-seller contract, rather than being listed in an MLS as a co-operating fee between brokerages.
Here are some things to be aware of:
Buyers
- Your first step will be to sign a Buyer Agency agreement that will outline the ways your Realtor® will represent you in your search for a new home and how they will be paid for their professional services.
- Buyers can negotiate many terms in their offer to purchase, including cash concessions from the seller to help cover different costs associated with buying a home. This now includes negotiating for the seller to pay a buyer broker’s fee.
- The Department of Veteran Affairs (VA) announced a temporary policy allowing VA buyers to compensate their real estate agents directly.
- Not all sellers will consider financial concessions so it’s important to set your home purchase budget to cover all costs associated with the sale, including your agent’s fee.
- Read more at NAR’s resource page for homebuyers.
Sellers
- Your first step will be to sign a Listing Agreement that will outline the ways your Realtor® will represent you in the sale of your home, including how they will be paid for their professional services.
- Your Realtor® will advise you on current market conditions and what will make your home attractive to the greatest number of potential buyers.
- Sellers can indicate if they will consider concessions to a buyer but they are not obligated to do so. Sellers should evaluate offers to purchase their home based on all specific terms and conditions, which may include a request for cash concessions to cover a buyer’s costs, including their broker’s fee.
- Read more at NAR’s resource page for sellers.
A professional Realtor® is your best advocate and will work with you to develop the strategy that works best for your goals. Reach out to me to get started on your next move!
