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rospective homebuyers starting their search this fall will face new rules governing real estate commissions. These changes, which took effect in August, are the result of the National Association of Realtors settling lawsuits over agent compensation. Sellers can still pay both their agent and the buyer's agent, but it's no longer assumed they will.
Buyers now have more control over commissions after NAR agreed to change how agents disclose their fees. "Some sellers continue to offer fee splitting," says David M. Dworkin, president of the National Housing Conference, "but buyers must ask about it." The buyer's agent will reveal the arrangement, and consumers can negotiate the terms.
The settlement aims to lower costs for homebuyers and sellers but may make the process more complicated. To navigate this new landscape, buyers should research agents before house hunting. This involves interviewing multiple agents, as buyer agreements are typically exclusive.
When selecting an agent, consider their experience, level of training, and past sales history. Ask about their fee structure, how they'll communicate with you, and what services they provide. A clear understanding of the agreement is crucial to avoid potential disputes.
Before signing a contract, review it carefully for plain language and ensure the commission amount and structure are specified. Key questions to ask include:
* What is your fee?
* How long is the contract for?
* Is there any flexibility in case you change your mind?
* What happens if we disagree?
Buyers should also be aware of potential arbitration clauses that may limit their rights. By being informed and prepared, homebuyers can make the most of this new commission structure and find a suitable agent to guide them through the process.
