Hey everyone, Michael LaFido here! Today's video is vital for anyone navigating the real estate market post-August 17th.
We're diving into a significant Department of Justice and National Association of REALTORS® (NAR) settlement that's reshaping the landscape, plus the new options available for both buyers and sellers.
First up, let's talk about the three choices buyers now have. Following the new regulations, buyers need a written agreement to tour homes—except for open houses.
Your options include:
1. Touring open houses with no written agreement needed.
2. A long-term buyer agency agreement, which includes compensation details and term limits.
3. A shorter, one-time showing agreement for those who don't want a long-term commitment but are willing to compensate if the seller doesn't.
On the seller's side, methods of compensating agents have evolved. Previously, the seller paid the listing broker, who then paid the buyer's broker.
The new options are:
1. Sellers can pay both brokers individually.
2. Sellers can choose not to pay the buyer's broker, passing this cost to the buyer.
3. Sellers can offer compensation but don't have to disclose the amount beforehand.
These changes emphasize the importance of working with an agent who knows the market inside and out. For example, we recently sold a home in South Wheaton for over $20,000 more than another agent's suggested asking price—showing why who you work with truly matters.
Understanding and adapting to these new rules can feel overwhelming, but we're making it easy. Our brokerage has streamlined the process, allowing for quick electronic agreements, making sure you stay compliant without the hassle.
As always, make it a great day, and if you or anyone you know is thinking about buying or selling a home, don't hesitate to reach out for a second opinion. Prove others wrong and come out ahead in this ever-changing market. Thank you!
