As real estate agents, we know that selling your home can be both an exciting and intimidating process. It’s a major financial decision and you have the right to have all the information you need to make that decision confidently. Earlier this year, the National Association of Realtors reached a settlement that ends home seller lawsuits related to agent commissions. In addition to affirming transparency and the ability to negotiate, the settlement terms also introduce some changes related to agent commissions. These changes are designed to benefit you as a home seller by increasing transparency and ensuring you have more control over your home sale. These changes are set to take effect on August 17. Here’s a breakdown from the NAR of what these updates mean for you.
You still have the option to offer compensation to buyers’ agents. You can look at this as a way to market your home or make your offer more attractive to buyers.
Your agent must clearly disclose to you, and obtain your consent to, any payments or offers of payment made by an agent to another agent acting for buyers. This disclosure must be provided to you in writing prior to any payment or agreement to pay to another agent acting for buyers and must specify the amount or rate of such payment.
If you accept an offer of compensation, there are changes to how this can happen. You, as the seller, can still offer compensation, but your agent cannot include it in a Multiple Listing Service (MLS) – MLSs are local marketplaces used by both buyer’s agents and brokers to share information about properties for sale. Your agent can promote your offer through off-MLS platforms such as social media, flyers, and websites. You, as the seller, can still offer concessions to the buyer on an MLS (such as concessions on the buyer’s closing costs).
The settlement practice changes described above will take effect on August 17. And to reiterate, many aspects of selling a home will not change going forward. Realtors are there to guide you through the process of selling your home and are ethically obligated to act in your best interest.
Your agent’s compensation is still completely negotiable. If your agent is a real estate broker, they must adhere to the Real Estate Agent Code of Conduct and have clear and transparent conversations with you about compensation. When looking for an agent to work with, ask questions about compensation and discuss what you want to offer buyers.
The choice is yours. Work with your agent to understand all of these choices when selling your home so you can make the best decision for your needs.
As we move forward with these changes, rest assured that real estate agents will continue to provide you with the trusted advice and support you need for a successful home sale. For more details on these changes and what they mean, visit www.facts.realtor. If you have any questions about these new practices or how they may impact your selling experience, please contact your local real estate agent. We’re here for you every step of the way. #ThatsWhoWeR.
