As of August 17th 2024, rules in residential real estate changed as a result of class action suits against the NAR (National Association of REALTORS®) and other real estate parties.
Here is a list of the specific changes and the impact it will have to Buyers and Sellers:
• Before showing a home, REALTORS® (members of the NAR) must have an Exclusive Buyer Agency Agreement signed with the Buyer client. The agreement determines the agent’s responsibilities and how they will be paid. The buyer agent cannot be compensated any more than what is specified in the agreement. If the fee offered by the seller is more, we can always ask for the difference to be given back to the buyer.
• Buyer agency compensation is no longer the sole responsibility of the seller. Prior to August 17th, the commission was paid to the listing broker from the seller’s proceeds. That fee was split between the Seller’s broker and the Buyer’s broker. You may have heard this referred to as “co-broker fee” or “cooperating compensation.” The Seller still has the option to compensate the buyer’s broker through the proceeds, but it is not required. The Buyer can always request buyer’s agency compensation as a part of their offer. This allows the buyer to include the compensation for the buyer agent in their financing.
• Offers of agent compensation will no longer be posted in MLS.
We want to emphasize that commissions are not set by law, are fully negotiable and shall be documented in the required agreements. Sellers who offer buyer agency compensation are more likely to attract a larger buyer pool.
The Baker Team has been well prepared for these changes. We have instituted them already while educating our clients. These new changes offer additional benefits and protections to home buyers and sellers. Our dedication and fiduciary responsibility to our clients will never change.
We are happy to discuss these changes further with you. Contact us anytime for more detailed information.
