Buying a home is often one of the largest financial decisions you'll ever make. REALTORS® are trusted advisors, guiding you through the complexities of the homebuying process and helping you make informed choices. The recent National Association of Realtors (NAR) settlement brings significant changes designed to benefit homebuyers. Here’s what you need to know:

Key Changes for Home Buyers:

  • Written Agreements Required: Before touring a home, you’ll need to sign a written agreement with your agent. This document should clearly outline the terms you’ve negotiated, including the services provided and their cost.

  • Clear Compensation Details: The buyer agreement must detail the compensation your real estate agent will receive, either as a specific amount, rate, or method of calculation. The compensation must be objective and not based on open-ended terms. Additionally, agents cannot receive compensation beyond what’s agreed upon in your agreement, and broker fees and commissions must be explicitly negotiable.

  • Agreement Applicability: The requirement for a written agreement applies to both in-person and live virtual home tours. However, if you’re simply chatting with an agent at an open house or inquiring about their services, a written agreement isn’t necessary.

  • Seller Compensation: While sellers can still offer compensation to your agent, this information cannot be disclosed on the Multiple Listing Service (MLS), which is used to share property details among brokers.

  • Seller Concessions: You can still accept concessions from the seller, such as offers to cover your closing costs.

What Remains the Same:

  • Agent Commitment: REALTORS® are dedicated to assisting you through the homebuying process and must adhere to the REALTOR® Code of Ethics, which prioritizes working in your best interest.

  • Negotiable Compensation: The compensation for your agent remains fully negotiable. If you’re working with a REALTOR®, ensure that you have transparent discussions about their fees and the services you’ll receive.

  • Your Choices: You still have options when buying a home. Collaborate with your agent to explore all available choices and make the best decision for your needs.

These changes take effect on August 17, and understanding them will help you navigate your homebuying journey more effectively.