New Realtor Rules August 2024

Hey folks, so you've heard about these seismic changes in our industry. The problem is that most of the media has got it wrong, and in reality, it's not so seismic. Let me explain. Due to this settlement with NAR (the National Association of REALTORS®) we as Realtors have new rules, we all must follow. Here are the two major changes.

1. Historically sellers have paid a commission to a broker that was not standardized and was solely what individual Brokers charged for their service. Of that commission that broker could, with the seller's permission, "share" a portion of his commission with another broker that might have a buyer for the seller's home. This created more demand for the seller's home, and in theory brought better prices (supply and demand). Nothing has changed in this regard.

This shared portion of the commission (CSB) was published in the MLS. What has changed now is that it can no longer be published in the MLS, so agents have to communicate the CSB through other methods (website, phone call, flyer in home... any way other than directly or indirectly in the MLS.

2. Now all Realtors have to have a signed "Buyers Representation Agreement" with any prospective buyer PRIOR to showing any home. This can be long term or short term, cover the entire state or just the one home that is being shown, but there has to be a "written agreement" in order for a buyer to see a house.

That's it in a nutshell, no big.

John