Headlines in Residential Real Estate
As the dust begins to settle from the settlement with the National Association of REALTORS®, (NAR) concerning commissions, home buyers and sellers have a lot to consider. Agents are just learning what these changes mean for our clients. Permit me to describe the current climate and how the new rules apply.
In the past, buyer’s agents were typically compensated after closing with proceeds from the sale by the seller. Buyers hired an agent to represent them, but didn’t negotiate their agent’s fee. Sellers may still offer to pay the Buyer’s agent commission, but that is no longer allowed to be advertised on the multiple list service (MLS).
The second major change is that home buyers must sign a binding contract with their real estate agent, which states the agent’s fee even before they tour a property together. In the past, buyers could see a number of homes with an agent before signing anything or discussing commission. Now when you want to go see a house, you are going to have to sign this detailed legal form committing you to the agent and to payment for that agent’s services.
One of the unintended consequences of these changes I foresee is the rise in dual representation. It is important for buyers to understand that the listing agent of the home you may go into represents the seller and has a fiduciary responsibility to that seller, not to the buyer. Separate seasoned agents representing each buyer and each seller has been the standard for successful smooth real estate transactions for decades for many reasons.
Here at Conner & Company we are committed to serving our buyers and sellers with integrity. Give us a call to discuss what services we provide, what we charge for those services and how we can assist you in selling or buying a home.
