Learn about the upcoming changes and how they affect buyers and sellers.
Today, I want to talk about an important change in the real estate industry that goes into effect on August 17. You might have seen some misleading headlines about the Department of Justice's class action lawsuit against real estate agents. I’m here to clarify what this means for both home buyers and sellers.
First, let’s address the changes. As of August 17, there will be significant shifts in our industry, particularly concerning transparency in real estate transactions. Currently, when selling a home, it's disclosed upfront whether the seller will cooperate with a buyer's agent and pay them a commission. This practice is changing. Going forward, listing agents can no longer disclose on the Multiple Listing Service (MLS) to buyer’s agents if, or how much, they will be compensated. This move towards less transparency might seem confusing, but it's something we’ll need to go through together.
If you're selling a home, you’ll need to work closely with your agent to decide the best approach for your situation. This could mean discussing potential compensation, incentives, or bonuses for buyer’s agents on a case-by-case basis. On the other hand, if you're buying a home, you’ll now need to sign a buyer agency agreement to work exclusively with an agent. It's crucial to ensure that your agent brings real value to the table...since you may have to pay your agent when buying a home.
"If you're selling a home, you’ll need to work closely with your agent to decide the best approach for your situation."
In light of these changes, who you work with truly matters. I’ve recently had two properties where other agents were undervaluing homes by as much as 20%. It’s vital to hire an agent with a strong marketing plan and a robust database, especially when selling. The same goes for buyers—you need an agent who knows the market and can negotiate effectively.
I wrote a book titled "Secrets to Top Luxury Agents," where I interviewed 26 agents from around the globe who have collectively sold billions of dollars in real estate. These experts shared their insights on what buyers should look for in an agent. If you’re interested, I’d be happy to give you a digital copy or drop off a hard copy. Just reach out to me at [email protected] with the subject "I want your book for free," and include your mailing address.
Bottom line: make sure you’re working with an agent you can trust, who is well-connected and dedicated to helping you make the best decisions, whether you’re buying or selling. If you have any questions or need further information, please don't hesitate to contact me.