SELINA LAMB | BIRCH PROPERTIES
Statement re. #breakingnews concerning the NAR | DOJ agreement
BIRCH Properties is privileged to be your agency of choice – whether it is buying, or selling, a home. As the details of the agreement announced Friday, March 15, between NAR (the National Association of Realtors®) and the DOJ were shared, know that we have been preparing for this shift for months and stand ready to serve both our seller and buyer clients with the same smarts, diligence and deep care we bring to the table every day.
It's natural that there will be some initial confusion around what the agreement means for you, sellers and buyers of homes. Transparency should always and will continue to come first. The changes anticipated must still be approved and changes are likely to go into effect sometime in July of 2024.
If you are selling a home, as always, you have the right to negotiate commission with your agent and agency. The agreement effectively separates commission paid by sellers of homes and buyers of homes. Buyers will now work with a buyer agent on an agreed upon commission basis. And sellers will work with their listing agent similarly, on an agreed upon commission. Negotiations around a purchase will now have an added layer of potentially negotiable terms.
Each market, and state regulations differ to varying degrees. This is specifically why it is essential to work with deeply knowledgeable and adept agents who know their markets, are savvy and forward-looking about new regulations and guidelines and are adept and successful negotiators; whether you are buying or selling.
Now for the nitty-gritty:
The agreement that NAR presented for this settlement PRESERVES the CHOICE for the consumer to compensate buyers’ agents. Compensation continues to be negotiable and should always be negotiated between agents and the consumers they serve.
The implication for home buyers and sellers is that once the new rule goes into effect, listing brokers and sellers will be allowed to continue to offer compensation for buyer broker services – they simply cannot communicate the offer via the MLS (multiple listing service.) Sellers may communicate their concessions, such as buyer closing costs, on the MLS, provided they are not conditional on the use of, or payment to, a buyer broker.
The settlement states that MLS participants working with buyers must enter into a written representation agreement. This will take the form of a buyer agency agreement and your agent will review this with buyers with great care.
Buyer agents are essential representation particularly in non-disclosure states like Massachusetts. At BIRCH our team of buyer agents are deeply knowledgeable about all aspects of your transaction and serve as your guide and advisor through every twist and turn of a transaction and stand ready, always, with the resources you need as you make a life-changing purchase.
Please contact us with any questions you may have. We are happy to discuss!
Our team at BIRCH Properties is always excited about change which will serve our clients’ path forward and we are READY!
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