When it comes to the real estate world, there has been a lot of discussion about new NAR rules related to agent commissions. However, the public is largely unaware of these changes. Most consumers simply want to buy or sell their homes and rely on professional help to do so.
What’s Going On?
In the real estate industry, there has been a buzz about changes in agent compensation, but there is a general lack of understanding about what exactly is changing. The core idea is that the way commission payments are disclosed to consumers is being revamped.
The only actual change is in how commissions are disclosed to consumers. Buyer agents will now have to be transparent about their compensation from the beginning.
What Will Change for Buyers and Sellers?
Both buyers and sellers will see some changes in how deals are structured.
For sellers
Sellers now have more options regarding how they compensate buyer’s agents. They can offer a set compensation, ask buyers to include it in their offer, or offer no compensation at all. These options have always existed but are now more transparent.
Buyer’s agents must now disclose their compensation structure upfront to buyers, eliminating any misconceptions about who pays them. However, the actual payment methods haven’t changed.
For buyers
Buyers will experience changes in how buyer’s agents disclose their payment methods. While the ways agents can be compensated remain the same, the clarity upfront is new.
How Am I Handling All This?
In Idaho, we have long had regulations in place regarding agent compensation disclosure, so these changes don’t impact our operations significantly. We continue to focus on providing value to our clients and ensuring fair compensation for our expertise.
Final Thoughts
While some agents may be concerned about these changes, I see them as a positive step towards cleaning up the industry. Agents will now have to demonstrate their value upfront, leading to better service for clients.
Overall, these changes are likely to improve the quality of service in the real estate industry, benefitting both agents and clients alike.
Note By BiggerPockets: These opinions are solely of the author and may not reflect the views of BiggerPockets.
