New regulations that are redefining the process of buying and selling homes in the United States came into effect this Saturday.
Implemented by the National Association of Realtors (NAR), these rules promise to transform the dynamics between buyers, sellers and real estate agents, affecting both costs and transparency in transactions.
The changes come as a result of a settlement in antitrust lawsuits in which NAR agreed to change how commissions are paid to real estate agents and who is responsible for those payments.
According to Kevin Sears, president of NAR, these new rules seek to offer consumers greater clarity and more options when buying or selling a property.
Major changes in real estate transactions
One of the most notable changes is the elimination of the ability for seller’s agents to publish commissions offered to buyer’s agents on multiple listing services (MLS), a key tool in the real estate market.
This means that buyer agents will no longer be able to select properties based on the commission offered, which previously could influence their recommendation of certain properties.
Another significant change is the requirement for buyers to sign a legally binding representation agreement with their real estate agent before they begin viewing properties.
This agreement not only clarifies how the agent will be paid, but also introduces the possibility for buyers to negotiate commissions. It also states that if the seller does not assume the commission, it could fall to the buyer.
Impact on the real estate market
Opinions are divided on how these new rules will affect the market. Some professionals fear that the fact that buyers will have to pay their agents directly could discourage purchases, especially in a market where house prices are already high.
But other experts, such as Norm Miller, professor emeritus of real estate at the University of San Diego, believe these changes could, in the long run, benefit consumers by encouraging competition and potentially reducing commissions.
Despite the potential benefits, it remains to be seen how consumers and the market at large will react to these new rules.
While some hope that these reforms will bring more transparency and choice, others are waiting to see how the real estate landscape will develop under the new regulations.
The truth is that these changes mark a before and after in the way real estate transactions are carried out in the United States.
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