The real estate landscape has undergone significant changes as of August 17, 2024, and as feared, these adjustments are starting to impact both buyers and sellers. If you haven’t been keeping up with the latest developments, here’s what you need to know.
Key Points for Sellers
- Seller’s Choice on Compensation: Sellers still have the option to offer compensation to buyers’ brokers.
- Disclosure and Approval: Listing agents are now required to disclose and obtain approval for any compensation offered. The process for doing this has seen several changes.
- MLS Restrictions: Compensation details can no longer be mentioned in the Multiple Listing Service (MLS).
Key Points for Buyers
- Written Agreement Requirement: Buyers must now sign a written agreement with their agent before touring any homes.
- Compensation Details: This agreement must include how compensation is structured.
- Seller’s Compensation Option: Sellers may still choose to offer compensation to the buyer’s agent.
The Impact on Buyers
These changes have been in effect for a few weeks, and we’re already seeing some concerning trends. Misinformation in the media has led many buyers to believe they must pay for all services out-of-pocket. As a result, some are choosing to go directly to the listing agent without representation, which can end up costing far more in the long run.
Why You Need Representation
Imagine going to court without an attorney—would you risk it? The same logic applies when making one of the biggest financial decisions of your life. In real estate, a buyer’s agent represents your interests, while a seller’s agent represents the seller. Buyers who go directly to the seller’s agent as customers miss out on the invaluable guidance a dedicated buyer’s agent provides.
The Risks of Going Unrepresented
Without proper representation, buyers are losing out on critical services that could save them tens of thousands of dollars. From finding the best lender and making informed decisions about flood zones, HOAs, and POAs, to interpreting seller disclosures and ensuring a thorough home inspection—these are all areas where a buyer’s agent can make a significant difference.
Home inspections alone can reveal costly issues like roof damage, HVAC problems, foundation cracks, plumbing and electrical issues, termite infestations, and more. If these are not addressed within the due diligence period, buyers risk losing their earnest money or even facing potential lawsuits.
What You Miss Without a Buyer’s Agent
Unrepresented buyers or those who work with agents merely as customers miss out on crucial follow-ups on repairs, coordination with closing attorneys and lenders, and understanding settlement statements. They also lose out on guidance in securing the best homeowners and flood insurance, ensuring utilities are transferred, and much more.
Our Commitment at Veterans Realty
At Veterans Realty, we are committed to providing trusted, caring, and professional service, regardless of the changes in the market. Our sellers continue to get top dollar for their homes, and our buyers receive the best representation with little to no out-of-pocket expense.
This is just the tip of the iceberg. Whether you’re buying or selling, please don’t sign anything until you give me a call at 912-321-7788. Let’s ensure you’re fully informed and protected in this changing market.