The Rest of the Story: How New Real Estate Rules Might Change the Game
Good day, friends. Today, we're going to tell you a story—a story about a lawsuit that’s been shaking up the real estate realm for several months and changing what's shared on MLSs everywhere. You see, on August 17, 2024, new rules are taking effect impacting sellers and buyers in all markets. But before we get ahead of ourselves, let’s take a step back and look at what set things in motion.
The Lawsuit that Started it All
Once upon a time, sellers would offer a piece of their pie—a portion of their commission—to the agent working for the buyer. It was a way to grease the wheels, to make sure everyone got a little something for their efforts. But as with many things, what started as a way to make things easier began to feel a bit heavy-handed. Some said it kept prices high, others argued it limited competition. And so, a lawsuit was born, taking aim at the very heart of how commissions are handled in the real estate world.
Now, we’ve arrived at the moment where the hammer falls. Sellers are no longer required to offer that piece of pie. They can keep it all to themselves if they so choose. But as any wise person knows, with great power comes great responsibility—and a few new challenges too.
For Sellers: The Ball is in Your Court
Sellers, you now have the power to decide if you’ll share that pie. Keep it all to yourself, and you might save a few pennies, but don’t forget—those pennies could cost you in the long run. Without that slice to offer or at least up for negotiation, your party of interested buyers may dwindle and, typically, when it comes to selling 'the more, the merrier' is quite true. So, what’s a seller to do?
You’ve got to think strategically. Are you in a market where buyers are lining up at the door? Maybe you can afford to keep that pie all to yourself. But if competition is tight, offering a slice might just get you that golden ticket—a buyer ready to make a deal.
And here’s the rub: Whatever you decide, make sure you’re upfront about it. Buyers don’t like surprises, especially not when it comes to money. Be clear, be transparent, and you’ll keep things smooth.
For Buyers: A Little More to Chew On
Buyers, the rules of the game are changing for you too. If the seller isn’t offering to pay your agent, that responsibility might fall on your shoulders. Now, that’s a new wrinkle, isn’t it? But fear not—with a little planning, you can navigate these waters just fine.
The good news? This gives you a bit more control. You’re in the driver’s seat when it comes to choosing your agent. You’ll want to make sure you’re getting value for your money. After all, if you’re paying directly, you’ll expect—and deserve—top-notch service.
But here’s where it gets tricky. You might think about cutting corners, maybe even skipping your own agent altogether and going straight to the seller’s agent. It’s called dual agency, and while it might seem like a shortcut, remember this: The road less traveled might leave you stranded without the full advocacy you need.
The Changing World of Commissions
Now, let’s talk about commissions—because here’s where things get really interesting. In the good old days, you could see right on the MLS what the buyer’s agent was getting. But those days, my friends, are fading fast. From here on out, if you want to know who’s getting what, you’ll have to ask. A phone call, a text, maybe even an email—yes, the simple act of inquiring about commissions has become another step in the dance of real estate.
But that’s not all. There are also new formal requirements that are changing the way business is done. For instance, before you even start touring homes, you’ll now need to sign a showing agreement—a formality that wasn’t always required upfront. This agreement lays out the terms of working together, ensuring that both parties are on the same page before the first door is opened.
And then there’s the exclusive buyer agency agreement. This form was always important, but it could be something you’d sign after seeing a home or two and gotten to know your agent in action. Now, it’s required right from the start. This ensures that everyone is clear about the relationship and the expectations before any serious house hunting begins.
These new formalities add a layer of clarity to the process, but they also mean that the relationship between buyers and agents is now more structured from the get-go. It’s a shift towards more transparency and accountability, which can ultimately help avoid misunderstandings down the road.
Buyers, if you’re strapped for cash and can’t afford to pay your agent directly, you’ll need to get creative. Maybe you ask the seller to cover that cost as part of your offer. It’s a conversation that needs to happen, and a savvy agent will be right there with you, making sure the deal is structured to your advantage.
The Bottom Line: Structuring Deals and Staying Competitive
And now, the rest...
Sellers, if you’re looking to keep your property in the running, think about offering that piece of pie. It might just be the sweetener you need to attract more buyers and the richer offer overall. Buyers, remember that you have options. If the seller isn’t offering, negotiate—structure your deal to cover those costs where necessary, and always, always, have a savvy agent by your side.
Because in the end, whether you’re buying or selling, it’s about staying competitive, staying smart, and navigating these new waters with confidence. And when the dust settles, you’ll be glad you did.
Now you know…the rest of the story.
Need a Guide Through These Changes?
Reach out to WMI Home Team today. We’re here to help you make sense of it all, with a wink, a smile, and the savvy you need to come out on top.
