Buying a home is one of the biggest financial steps you'll take, and understanding recent changes in the process is crucial. The National Association of REALTORS® (NAR) recently reached a settlement that introduces new practices to protect and benefit homebuyers. Here’s what you need to know:
What Has Changed
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Written Agreements: Before touring a home, you are required to sign a written agreement with your agent. This ensures transparency in the services provided and the compensation your agent will receive. This is not a new form, but the requirement to sign it is.
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Clear Compensation Terms: The agreement must clearly state the agent's compensation, including specific amounts or rates. It also emphasizes that compensation is fully negotiable and not set by law.
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Flexibility in Seller Contributions: While sellers can still offer to compensate your agent, these offers can’t be listed on a Multiple Listing Service (MLS). However, seller concessions, such as paying for closing costs, remain an option.
These changes, effective August 17, 2024, ensure more transparency and control in your homebuying experience.
What Remains Unchanged
Despite these updates, some things stay the same:
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REALTORS®’ Commitment: Agents who are REALTORS® continue to be ethically bound to work in your best interest throughout the homebuying process.
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Negotiable Compensation: Your agent’s compensation is still fully negotiable, and they must provide clear, honest discussions about it.
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You Have Choices: Understanding all your options with your agent's guidance is key to making the best decision when buying a home.
If you're ready to navigate the homebuying process or want to discuss the best strategies in light of these changes, feel free to reach out to me! Let's work together to make your homebuying journey smooth and successful.
