New changes in Real Estate affecting buyers, sellers and their brokers.

To say real estate is changing is like saying the sun is rising. But this time a great shift is indeed taking place. Everyone is trying to figure out where or how the dust settles.  If you are planning to buy or sell- Pay Attention! Lets start from the beginning. The National Association of Realtors (NAR) lawsuit and settlement appears to be close to been settled.  The implications of this lawsuit and settlement for a buyer or seller are significant. Traditionally brokers negotiated with sellers to pay for their fees and buyer brokers fees. This offering was disclosed on Multiple Listing Service (MLS). Buyers came to expect the services they received from their buyer agent to be paid for by the seller. This settlement makes this go away-SORT OF.

Here are some changes: 

NAR has a new rule prohibiting offers of compensation on the MLS. This means buyers, seller and their brokers can still offer compensation.  They just can not do it through MLS. 

Sellers can still offer compensation, it can be any amount and can take different forms. 

Sellers can also offer concessions and subsidies to buyer on MLS.

Compensation by seller for buyer agent can be offered off MLS

What do these new rules mean for your buyer agent and buyer?

1.  A buyer agent can not show a house unless a buyer has signed a written agreement. 

2.  If you are buyer, the broker/agent fee is your obligation.

3. If you are planning on buying, start the conversation with your lender on how buyer broker/agent fees can be worked into the loan.

4. Your buyer agent can and should negotiated with seller broker for some compensation.

Who are the winners or losers?

It might appear  for now as if sellers are the winners especially in this market with low inventory. But if the market shifts, this changes. Or that sellers will keep more of their money while buyers have to come up with more. The truth is this will take time to become clear. What is clear is that your buyer agent has their work cut out for them.