If you’re planning to buy a home or have recently started the process, you’ve likely heard about the changes impacting how you work with a real estate agent. On August 17, 2024, new regulations were implemented that change how agents and buyers engage with each other, requiring written agreements before you can even step foot in a home. In this post, I’ll break down what this means for you as a homebuyer, how it affects the real estate process, and why it’s ultimately beneficial.
What’s New in Real Estate as of August 2024?
As of August 17, 2024, both agents and potential buyers are required to sign a formal agreement before a property can be shown. In the past, it was relatively easy for an agent to show homes without an official contract. Now, things have changed, and transparency is the driving force behind this new law.
What Does the New Agreement Entail?
This agreement is designed to clarify compensation before any home tours happen. As a buyer, you and I will sit down to discuss how much I will be paid if we successfully close on a home together. This isn’t just a practice here at Berkshire Hathaway; it’s now the law nationwide.
While this process might feel like an extra step, it’s actually a way to ensure everything is clear from the very beginning. In the past, sellers typically decided on the agent’s commission, leaving many buyers unaware of the exact breakdown of fees. With this new rule, there are no more surprises, and you’ll know upfront what to expect.
How Does This Benefit You as a Buyer?
Transparency is key in real estate, and the new law ensures that compensation is clearly outlined and fair. Historically, buyers may not have been fully aware of how their agent was compensated, often creating confusion during the closing process. Now, both parties agree upfront on the agent’s commission, which is typically a percentage of the sale price.
(Note: In many cases, the seller will still pay this commission. This part of the process hasn’t changed much.)
This upfront agreement ensures that all parties are on the same page, making the process smoother and eliminating any hidden agendas or unexpected fees. As a buyer, this means you can focus on finding the right home, knowing that your agent is working solely in your best interest.
The Importance of Objectivity and Fairness
The new law also removes any ambiguity about who pays the real estate agent and how much they are paid. In the past, sellers determined the agent’s compensation, which sometimes led to questions about fairness. Now, with written agreements, you have a clear understanding of what the compensation will be before viewing homes. This transparency ensures that there is no conflict of interest, and you can trust that your agent is solely focused on helping you find the best home for your needs.
Why You Shouldn’t Be Daunted by the New Law
While the idea of signing a contract upfront might seem intimidating, it’s actually a step in the right direction for homebuyers. Not only does it bring more transparency to the table, but it also ensures that your agent is committed to your needs. You’ll know exactly what to expect from the beginning, and the process will become more straightforward as a result.
At The Blanchard Team, we’ve always operated with this level of transparency, which is why we consistently receive excellent reviews from past clients. This law simply formalizes what we’ve already been doing. If you’re nervous or unsure about how this new process works, feel free to reach out—we’re here to guide you through it.
Final Thoughts
Navigating the home-buying process can be complicated, but with this new law, buyers now have a clearer understanding of what to expect when it comes to agent compensation. By signing an agreement upfront, you ensure that your agent is fully dedicated to your needs and working in your best interests.
If you have any questions about how this new process works or how it might affect your home search, don’t hesitate to reach out. I’m here to help make your home-buying journey as smooth and successful as possible.
For more details and a full breakdown of these changes, check out my video here:
