New Day in Real Estate USA

You’ve probably heard about recent changes in our industry—I haven’t been avoiding them; it’s just taken a bit to figure them out. The most significant change is that seller commissions will no longer be advertised in the Multiple Listing Service (MLS).

Buyer’s Representation Agreement

Additionally, buyers are now required to sign a Buyer’s Representation Agreement before viewing properties, whether in person or via virtual tours such as FaceTime or video walkthrough. Before August 17, 2024, agent commissions were “coupled,” meaning buyers knew their agents would be paid out of the seller’s proceeds because payment information was listed on the MLS.

Negotiating Buyer’s Agent Commissions

Now, that information has been removed. This doesn’t necessarily mean sellers won’t pay the buyer’s agent, but the buyer agent’s commissions may require negotiation in the purchase contract. Buyers may need to cover the agent’s fee if a seller refuses to pay. The new process is designed to be more transparent.

Importance of Pre-Approval and Contract Updates

With the Buyer’s Representation Agreement, agents will likely expect buyers to be pre-approved before showings. This was really always the first step in the process if you were obtaining a loan. Sellers will still have an agreement to pay their agent, but buyers need to be mindful of potential additional costs.

What to Expect Moving Forward

In the future, you may see buyer’s agent commissions advertised on signs and websites. Still, your buyer’s agent should contact the seller’s agent before writing an offer to confirm this information. Contracts have also been updated to clarify payment, so ask your agent about any new details. They should explain how these changes benefit you. See, it’s not as scary or complicated as it might seem!