NAR Policy Changes Impacting Homebuying

9 Important Takeaways for Real Estate Buyers from the New Policy Changes That Affect Homebuying

When significant policy changes were announced by the NAR (National Association of Realtors) in March, it left many wondering how these updates would affect the market. As a homebuyer, it’s essential to understand these changes to navigate the homebuying process effectively.

Here are nine key takeaways from the new real estate policies that will impact you as a buyer. Understanding these can help you make informed decisions in addition to optimizing your homebuying experience.

1. Policy Changes Take Effect in August

Although the announcement was made in March, these changes won’t take effect until August 17, 2024. This gives you some time to understand as well as prepare for the new procedures.

2. MLS Will No Longer Display Commission Offers

One of the significant changes is that the Multiple Listing Service (MLS) will no longer display commission offers, therefore:

  • Listing agents are no longer required to offer compensation to buyer agents, although they can still do so.
  • Offers of compensation to buyer agents will no longer be visible on the MLS.
  • Compensation details will need to be discussed privately, off-MLS.

This change aims to bring more transparency to the homebuying process.

3. No Bypassing Policy Changes

The new rules prevent MLSs from using alternative methods or websites to share commission offers. This ensures that the changes are uniformly applied and additionally, that you receive consistent information across the board.

4. Written Agreements Before Home Tours

Before touring any homes, you will need to sign a written agreement with your real estate agent. This agreement will outline the services your agent will provide in addition to their compensation. It ensures that you clearly understand your agent’s role as well as ensure that there are no surprises regarding fees and services.

5. Clear Disclosure of Agent Compensation

Your agent must disclose their compensation clearly in the buyer’s agreement. The compensation must be specified, additionally it cannot be open-ended or vague. This transparency helps you understand exactly what you will be paying for their services.

6. Commissions Are Negotiable

One of the essential aspects of the new policy is that it emphasizes that commissions are negotiable. Your agent must inform you that their compensation is not set by law additionally, it can be negotiated. This empowers you to discuss as well as agree on a fair rate for the services provided.

7. Fair Listing Practices

Agents can no longer filter listings based on the offered compensation. This means all listings, regardless of the commission offered, will thusly be available for you to consider. It ensures that you get a comprehensive view of the market without any bias.

8. New Educational Content for Buyers

New educational materials will be developed to help you understand these changes, in addition to clear information about the new practices. Thus, ensuring you are well-informed about your rights and options during the homebuying process.

9. Increased Awareness About Negotiable Commissions

While many of these policies were already in place, the changes have raised public awareness about the negotiability of commissions. More buyers now understand that they can negotiate the fees and services with their agents, leading to potentially better deals.

At Shoket Properties, we are committed to providing you with the best possible homebuying experience. Irina and Jeff Shoket are dedicated to helping you navigate these new policies with ease and confidence. We believe in transparency, fairness, and supporting you every step of the way.

For expert guidance as well as personalized assistance, reach out to Irina and Jeff Shoket today. We are here to help you achieve your real estate goals in addition to ensuring your experience is both successful and rewarding.

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We look forward to assisting you with all your real estate needs in Thousand Oaks and beyond. Your successful real estate journey starts here!

See our article on the NAR settlement in Discover The Region Magazine