Now that August 17th has passed, significant changes have taken effect in real estate practices. Many of these changes are straightforward, and at Mr. Lister Realty, we’ve already been implementing them to ensure smooth transactions for our clients. Whether you’re a buyer or a seller, it’s essential to understand these updates to navigate the real estate process with confidence.
What Buyers Need to Know
- Written Agreements with Your Agent:
When you’re ready to tour a home—whether it’s in person or virtually—you’ll need to sign a written agreement with your real estate agent beforehand. This agreement formalizes your relationship and outlines the services your agent will provide.
- Check Your State Laws: Several states already require buyer agreements. It’s a good idea to verify your state’s specific laws. For example, here in Maryland, we have been doing this for years!
- Exceptions: You won’t need a written agreement if you’re simply talking to an agent at an open house or asking general questions about their services.
- Before You Sign: Make sure the agreement reflects the terms you negotiated with your agent. Understand the services you’ll receive and how much they’ll cost.
- Negotiable Agent Compensation:
One of the key points to remember is that compensation for your agent is entirely negotiable. There is no set law dictating how much you should pay; it’s up to you and your agent to agree on a fair amount. - Details on Buyer Agreements:
Buyer agreements must clearly outline the terms, including the services offered and the compensation structure. If you have questions about these agreements, don’t hesitate to ask your agent for clarification. - Home Seller’s Role in Compensation:
The home seller might agree to offer compensation to your agent, but this offer won’t be shared on the MLS (Multiple Listing Service). This practice change is now in effect as of August 17th. - Non-Discrimination Rights:
As always, you have the right to expect fair treatment in housing without discrimination based on race, color, religion, sex, disability, familial status, or national origin.
What Sellers Need to Know
- Offering Compensation to Buyer Brokers:
As a seller, you still have the option to offer compensation to buyer brokers. Doing so can be in your best interest as it may attract more buyers to your property, just like setting a competitive list price. - Disclosure of Payments to Buyer Brokers:
Your agent must clearly disclose and obtain your approval for any payments or offers of payment they plan to make to another broker representing buyers. This disclosure must be in writing and made in advance. - Exclusion of Compensation on MLS:
If you approve an offer of compensation, it cannot be included on the MLS. However, your agent can still market your listing through other platforms like social media, flyers, and websites. - Buyer Concessions on MLS:
You can still offer buyer concessions (such as covering buyer closing costs) on the MLS. This flexibility remains unchanged. - Non-Discrimination in Sales:
Just as buyers are protected, sellers are also required by law to conduct business with prospective buyers without discrimination.
What’s Not Changing for Everyone
- REALTORS® Commitment to Ethics:
If your agent is a REALTOR®, they are ethically obligated to work in your best interest. This commitment hasn’t changed, and you can rely on them to guide you through the transaction process. - Compensation Negotiation:
Compensation for agents is still fully negotiable. When working with a REALTOR®, expect clear and transparent discussions about this aspect. - Understanding Your Choices:
You have choices in your real estate transactions. We encourage you to discuss these options with your agent to determine what works best for you.
At Mr. Lister Realty, we’re here to help you navigate these changes with ease. If you have any questions or need further clarification, don’t hesitate to reach out to us. We’re committed to ensuring that your real estate experience is as smooth and successful as possible. Stay informed and follow us on Facebook for more information as it arrives!
