Aug 17th changes
If you’ve been following the Sitzer Burnett case and the news about changes in the real estate industry, August 17th is the date that those changes will become effective everywhere. Our local MLS’ (multiple listing services) have already begun implementation. After many long legal hours for those involved here are the main changes that are being made across the country and our take on it.
If you would like to tour a home as a buyer, the agent showing you the home is required to enter into a written buyer agency agreement with you that outlines what services they offer and compensation details. These will be required for both in person and virtual tours. You can still tour open houses on your own without this agreement. The good part about this in our opinion is that this provides an opportunity for full transparency in that before you tour a home and essentially begin working with an agent, you will know what services the agent showing you the home offers and what they charge for them. However, what if this showing is the first time you’re meeting this agent and you’re not sure if they are the right person to hire? Are you being forced into a contract with someone you aren’t sure about yet? This concept may understandably cause some consumers anxiety. In fact in Colorado right now, consumer complaints about just this are rolling into the real estate division of within the Colorado Department of Regulatory Agencies. While we are in North Carolina, the changes being implemented are national and the responses that begun to take effect anywhere can have some relevance across the board. So what are we doing about this concern @ Salted Pines? We want to discuss the needs of every individual client as they pertain to them. Honesty, transparency and problem solving are what have made us successful and we don’t plan to change that at all. Our goal always has been to make sure that every consumer is fully informed and gets the best services possible. So if you are interested in working with us to represent you as your buyer’s agent which includes showing you properties of interest, we will fully discuss with you what this means PRIOR to any showings or signing of any agency agreement. You will never be forced or rushed into signing anything. We will continue to provide buyer agency agreements in writing as we always have.
Cooperative compensation has always been and remains negotiable. It now cannot be referenced in or entered into a MLS in any way. It can continue to be offered by sellers as it always has as an incentive to broaden the availability of potential buyers. Despite what some news media sources have put in their headlines, there has never been a fixed amount of compensation real estate professionals get nor is it true that due to the settlement cooperative compensation can no longer be offered. The only change is the way in which it can be advertised and there is also increased documentation to ensure that home sellers are aware this is a fully negotiable option and home buyers are aware of the exact amounts their agents are receiving for the services they provide. We do believe that incentives offered by a seller when selling their homes can offer a great benefit as it can increase the number of home buyers who show interest in a property. When the seller agrees to cooperative compensation they are telling their agent that they are permitted to share their agreed upon compensation with an agent who represents the buyer of their home. It is similar to when sellers agree to offer concessions that will go towards helping a buyer pay their closing costs- it’s a negotiable item. It will remain the seller’s choice whether they want to offer cooperative compensation. For our sellers who do agree to offer this, we will ensure that we advertise this well in all aspects of our marketing for the purposes of bringing in the most amount of interest for your property as possible.
See the below links for Homebuyers and Homes Seller info sheets from the National Association of Realtors®
Homebuyers:
Home Seller:
