Well, maybe not everyone is talking about it, but it's all the buzz in the real estate community.
In case you missed the memo, there was a landmark class action lawsuit settlement agreement on March 15th that has the potential for a big impact on the real estate industry. Most of it is focused around buyers’ agent representation, and buyers agent commission and how it gets paid.
Here are 5 things we think you need to know:
If you plan to sell your home, expect to have more conversations with your real estate agent about how much buyers agent commission you want to offer… or not offer. Historically sellers have paid a fee to the listing agent’s brokerage, with a portion getting paid out to the buyers agent’s brokerage. The settlement agreement (if approved by a judge) will prohibit offers of buyers agent commission (BAC) from being listed on Multiple Listing Services (MLS’s.) BAC’s can and will still be offered, however, that info will be communicated differently.
If you plan to buy a house, expect to have more conversations with your real estate agent about agency relationship. In the coming months buyers will be expected to have a signed representation agreement with their real estate agent before touring their first home together.
If you are a buyer, there may be changes on how your real estate agent gets paid. You may be expected to pay if the sellers of a house you like are not offering a buyers agent commission.
The settlement agreement still has to be approved by a judge. Changes are expected to take place later this year, likely in mid-July.
We believe with the outcome of this lawsuit will bring greater professionalism and transparency to our industry and help raise the bar for how real estate agents represent their clients.
We expect the market will react to these changes in the way that markets adapt to any change. That could shake out in a number of ways. We will continue to be students of the real estate industry, always seeking to learn, adapt and bring more value to our clients.
If you have any questions about what this means for you, reach out anytime! I am just a phone call away!
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