On March 15, The National Association of REALTORS® (NAR) reached a settlement agreement that includes several procedural changes to real estate transactions. The changes allow consumers to continue to have choices regarding real estate services and encourage additional transparency and communication. These practice changes go into effect no later than Aug. 17, 2024.
Key Changes:
1. Buyer’s agents will sign a written agreement with a buyer before showing properties
- Realtors working in Utah have had signed written agreements with buyers for more than two decades. What will change is when this will occur in the process — it will happen right at the outset, before the buyer views a home.
- The written agreement will specify what services will be provided and for how much.
- Written agreements are required for both in-person and live virtual home tours.
- You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services.
2. Listing agents will communicate offers to pay for a buyer’s agent differently
- The multiple listing service (MLS) is a database where agents share property information and advertise listings. Under the settlement, a listing agent who offers to help pay for the buyer’s agent will no longer do so on the MLS.
- Sellers will continue to have conversations with Realtors about the best ways to market their properties and attract buyers based on current market conditions. Strategies may include:
- Authorizing their broker to compensate the buyer’s agent.
- Paying the buyer’s agent as part of the real estate negotiation.
- Buyers will discuss options for compensating their agent. Options may include:
- Paying their agent directly.
- Asking the seller to cover the cost.
- Choosing a home where the seller’s broker helps offset the cost.
Tips for Homebuyers and Sellers:
- Talk to a Realtor to help navigate the additional complexities that will occur as part of the real estate negotiation.
- Talk to a Realtor to understand all options and choices.
- Remember that agent compensation for home buyers and sellers continues to be fully negotiable.
- When finding an agent to work with, ask questions about the services provided, compensation and the written agreements required.