The Bay East Association of Realtors is getting a head start on upcoming changes in the home buying and selling process.
As part of a recent class action settlement, the National Association of Realtors is implementing significant changes nationwide. According to NAR, these changes are aimed at increasing transparency, empowering consumers and promoting healthy competition in the real estate market.
Under the terms of the class action settlement, the changes must go into effect by Saturday (August 17). Real estate agents in the East Bay had to adopt the new business practices as early as this week.
“Consumers will see significant changes in the way they buy and sell a home,” said Barbara Clemons, 2024 president of the Bay East Association of Realtors. “While the cooperative compensation between the seller’s agent and the buyer’s agent will no longer be communicated through the Multiple Listing Service, it can still be negotiated directly between consumers and real estate professionals.”
Clemons said sellers and agents can still offer compensation outside of the MLS. She explained that sellers can also make concessions to buyers in the MLS, such as paying the buyer’s closing costs.
Home sellers can expect new real estate forms that explain how to handle commissions. These forms specify that commissions are completely negotiable, and they disclose the amount or level of compensation the agent receives from each source. They also clearly state how an agent is compensated, and ensure that compensation is objectively ascertainable and not unlimited.
There are changes for homebuyers, too. The class action settlement requires potential buyers to enter into a written agreement with their agent before they can view a property.
“We have worked with the California Association of Realtors, which is providing new versions of the purchase agreement and other forms to help our members understand the changes,” Clemons said.
“Bay East Realtor members play a critical role in one of the most important decisions in their clients’ lives,” she added. “The new changes in real estate practices will provide both home buyers and sellers with more information about the buying and selling process.”
Clemons noted that the real estate profession and the way homes are sold and bought are constantly evolving and that practice changes are part of that evolution.
Clemons said, “During my career as a real estate agent, I have seen many changes brought about by technology, the way we communicate with each other and the expectations of buyers and sellers. I am confident that our members will adapt quickly and that their clients will also better understand the value a real estate agent brings to all aspects of a real estate transaction.”
NAR provides information about what these changes mean for the home buying and selling experience in its Buyer and Seller Guides and on facts.realtor.
Editor’s note: David Stark is chief public affairs and communications officer for the Pleasanton-based Bay East Association of Realtors.
