Recent changes have now been released as to how the Future Process of Home Buying and Home Selling will continue in Real Estate, per the outcome of the National Association of REALTORS® (or NAR) litigation settlement.
If you have any questions on the new Process of Home Buying or Home Selling, or if you'd like a Professional, No Obligation, In-Person Consult to walk through the actual Buyer Representation Agreement and/or the Seller Listing Agreement Form changes, please don't hesitate to give Zane Petersen a call at 763.843.2905.
The Process of Buying and Selling a Home Changed August 17th, 2024...
NAR Litigation Settlement - We are just past the Aug. 17, 2024 date for the implementation of the new Buyer and Seller Representation changes for the real estate industry to adopt practice changes from the National Association of REALTORS® (NAR) litigation settlement.
Home Buyers, Here’s What the NAR Settlement Means for You - Buying a home is one of the largest financial transactions most people will ever undertake. Agents who are REALTORS® are a trusted source of advice and stand ready to help you navigate your home buying journey and make the choices that work best for you. NAR’s recent settlement has led to several changes that benefit home buyers, and we wanted to clearly lay them out for you.
Here is what the settlement means for Home Buyers:
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You will sign a written agreement with your agent or REALTOR® before touring a home.
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Before signing this agreement, you should ensure it reflects the terms you have negotiated with your agent and that you understand exactly what services and value will be provided, and for how much.
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The buyer agreement must include four components concerning compensation:
1. A specific and conspicuous disclosure of the amount or rate of compensation the real estate agent will receive or how this amount will be determined.
2. Compensation that is objective (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended (e.g., cannot be “buyer broker compensation shall be whatever the amount the seller is offering to the buyer”).
3. A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and,
4. A conspicuous statement that broker fees and commissions are fully negotiable and not set by law.
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Written agreements apply to both in-person and live virtual home tours.
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You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services.
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The seller may agree to offer compensation to your agent. This practice is permitted but the offer cannot be shared on a Multiple Listing Service (MLS)— MLSs are local marketplaces used by both buyer brokers and listing brokers to share information about properties for sale.
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You can still accept concessions from the seller, such as offers to pay your closing costs.
These Real Estate Buying Practices went into effect on August 17, 2024. This full article taken from NAR's Website is available HERE
If you have additional questions or if you'd like an In-Person, No Obligation consultation with a Professional REALTOR® to review the Forms, please call 763.843.2905 and Zane Petersen or one of our seasoned professionals will schedule a visit with you. Happy to help!
Zane Petersen Luxury Real Estate is located on Lake Minnetonka. Zane has over 23+ years of 'real' Real Estate knowledge, including Commercial and Residential Real Estate.
As a trusted advisor to You, Home Buyers and Sellers, I'll work tirelessly to ensure we:
1) Position Your Home To Out-Perform The Market, In Any Market.
2) Market to reach the MORE Buyers (not just some) through extensive Professional and Strategic Marketing.
3) Sell for Top $, nothing matters to you more...
