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Changes to Buyer Representation due to the National Association of REALTORS settlement

 


Starting August 17, 2024, significant changes are coming to how home buyers interact with their agents, thanks to a settlement involving the National Association of REALTORS. If you're in the market for a new home and your agent uses a Multiple Listing Service (MLS), you'll now need to sign a written agreement with your agent before touring any property. This new rule, designed to ensure transparency and clarity, applies to both in-person and live virtual tours. However, casual conversations with agents at open houses or inquiries about their services do not require such an agreement. 


Consumers should know that after August 17, 2024:

  • If you are a buyer and your agent is using an Multiple List Service (MLS), you will need to sign a written agreement with your agent before touring a home so you understand exactly what services will be provided, and for how much.

  • Written agreements are required for both in-person and live virtual home tours.

  • 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.

  • Agent compensation for home buyers and sellers continues to be fully negotiable.

  • When finding an agent to work with, ask questions about their services, compensation, and these written agreements.

What does it mean to tour a home?

  • Touring a home means when the buyer and/or the MLS Participant, or other agent, at the direction of the MLS Participant working with the buyer, enters the house.  

  • This includes when the MLS Participant or other agent, at the direction of the MLS Participant, working with the buyer enters the home to provide a live, virtual tour to a buyer not physically present.

  • A "home" means a residential property consisting of not less than one nor more than four residential dwelling units.

 Does the requirement for a written agreement with buyers mean that MLS Participants and buyers must enter into a written agency agreement?

  •  No.  MLS Participants and buyers will still be able to enter into any type of professional relationship permitted by state law.

  • Policy does not dictate:

    • What type of relationship the professional has with the potential buyer (agency, non-agency, sub-agency, transactional, customer)

    • The term of the agreement (one day, one month, one house, one zip code, etc.)

    • The services to be provided (certain number of showings, negotiations, presenting offers, etc.)

    • The compensation charged ( e.g., $0, flat fee, X percent, X hourly rate, etc.)

In conclusion, it is essential for consumers to understand the changes taking effect on August 17, 2024. As a buyer, you will need to sign a written agreement with your agent before touring any home, ensuring clarity on the services provided and associated costs. This requirement applies to both in-person and virtual tours but is not needed for casual inquiries at open houses or general discussions with agents. Remember, agent compensation remains negotiable, so when choosing an agent, ask detailed questions about their services, compensation, and the specifics of these written agreements. Understanding these requirements will help you navigate the home-buying process more effectively and ensure a transparent and professional relationship with your agent.

Whether buying, selling, or seeking valuable insights into the market, I'm here to be your trusted guide in the dynamic world of real estate. Feel free to contact me for a confidential discussion, where we can explore your goals, address any questions, and navigate the exciting path of real estate together. Your real estate journey is unique, and I am committed to providing personalized assistance tailored to your needs. Don't hesitate to connect; your next real estate adventure awaits!

Dani

734-623-9442 | dani@danihallsell.com



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Location: Ann Arbor, MI, USA

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