Big Changes Coming to Real Estate This Summer: What You Need to Know If You’re Buying Soon
Hey there Home Buyer!
There are several changes making their way to our West Michigan Real Estate Market, Effective August 1st
Due to a recent class action lawsuit, the National Association of Realtors (NAR) is rolling out new rules that will change how local real estate agents (including our office) represent buyers in a sale.
What's happening?
Beginning August 1st, if you’re working with a real estate agent to buy a home, you’ll need to have a written contract with your Agent in place before the first showing. This agreement will spell out a few key things:
The Fee: You’ll know exactly what the agent’s fee is for representing you.
How the Agent Gets Paid: How and when you’ll be paying this fee.
Duration: How long this agreement is good for.
Why the change?
This all stems from a lawsuit in Kansas City, which led to the courts deciding that buyers and sellers in that area, throughout the country really, needed more transparency and clarity when it comes to real estate transactions. Our office was already using these contracts, but now, contracts with all real estate firms will be required to clearly spell out terms of their representation from the get-go.
The negotiable commission
Here’s the biggest change: If you want the seller to pay your Agent’s commission, it will now be a negotiable item in the purchase agreement rather than marketed with the listing. This means that during negotiations, you can ask the seller to cover your Agent’s fee, just like you might negotiate who pays for repairs or closing costs. It’s all about making sure everyone knows who’s paying for what, and when.
Why work with a buyers agent?
You might be wondering, “Do I really need a Buyer’s Agent with all these new rules?” Absolutely, yes! A Buyer’s Agent is your best friend and trusted guide in this process. They’re there to advocate for you, find the best deals, and navigate the complex world of real estate. With these new rules, having a dedicated professional on your side is more important than ever.
Wrapping it up
In a nutshell, the way we represent our buyers is evolving, and we are so glad transparency and fairness will be part of the process for all real estate agents moving forward.
We will continue to have easy to understand buyer agreements and starting August 1st, other offices will implement them as well. It’s a win-win for buyers across the country!
If you’re looking to make a move, give us a call. We’re ready to help!
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