07/28/2024
I am getting a lot of questions from clients and friends about the changes the DOJ has enforced - it’s not much of a change, there’s only a few more options.
“With the new real estate changes coming in August, let’s review the impacts to buyers and sellers:
Sellers won’t be able to advertise a commission payout on the MLS. However, compensation can be marketed ANYWHERE else (social media, websites, over the phone, etc). In my opinion, this will simply add one small step for Realtors, and it really shouldn’t have a noticeable impact on sellers at all.
Buyers will not be able to view a home with a Realtor unless they’ve signed a buyer representation agreement. A couple exceptions have been discussed, including open houses and showings from sign calls. In my opinion, this is a good thing for buyers. Many buyers have been so excited to run out and look at homes that they work with the first agent they contact, often being a part time agent, less experienced agent, or an agent who doesn’t offer a lot of value. I’m hoping that the small amount of fear of signing a buyer representation agreement on day one will motivate more buyers to research and interview a few agents…just as sellers usually do…before committing to that perfect agent for them.
Will buyers be responsible for paying their agent’s compensation? There are many variables, but everything I’m reading points to a mostly unchanged experience, with the majority of sellers being open to paying the buyers agent’s compensation. Sellers have always been allowed to offer as little as $1, yet I’ve never seen a $1 payout. Why? Most strong listing agents will show the correlation between incentivizing buyers and their agents, and receiving more showings, more offers, and stronger offers.
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