There's been a lot of talk and numerous headlines about the recent settlement by the National Association of Realtors regarding commissions. As a result, there's a lot of misinformation and some level of panic among both agents and consumers.
Let me reassure you, there won't be any major changes, at least not for the professionals. It's just another evolution in the constantly changing real estate scene.
The two stand out changes with this are:
Commission cannot be advertised in the MLS
Buyer Agents must have a signed representation agreement before they can show a property to a buyer(s)
So what does this
mean for you?
01. Sellers
Absolutely nothing has changed for sellers. Commissions and agent splits have always been negotiable and will remain so. I make it a point to inform my sellers about the advantages of marketing where the buyers are most active—on the internet and through buyer agents.
Has the internet become a significant source for buyers finding homes? Undoubtedly. This trend has persisted throughout my 20 years in real estate, and it continues to become more and more accessible for buyers. Nevertheless, we mustn't overlook the role of buyer agents and their capacity to bring potential buyers to your home
02. Buyers
There have been a few minor changes, but not much has shifted. You still have the option to search for homes on the internet and choose not to engage a buyer agent and deal directly with the listing agent; this has always been the case. Some sellers may opt not to compensate a buyer's agent, placing more responsibility on the buyer to compensate their agent as representation agreements
become a standard requirement.
Representation agreements, although always used by most (I personally utilize them), have typically not been mandatory unless mandated by a brokerage for its agents. I strongly encourage open and transparent communication with your agent and, most importantly, asking questions! A reputable agent who adds value will welcome any questions, regardless of their size or number, and will provide
accurate and prompt answers.
03. Agents
This is the evolution to watch, in my opinion. We as agents are all going to need to tweak how we do business. Both listing and buyer agents will need to step up their professionalism, nail their communication with clients, and really showcase what they bring to the table. I've always felt these were things that should've been happening and things that truly professional agents are already doing, but now it's crucial. It's a genuine upgrade for the industry. It's a chance for the real pros to shine and for the less professional ones to get weeded out!
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Disclaimer: The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the HRIS.