By now, you may have heard about the landmark lawsuit concerning real estate commissions and buyer agency, often referred to as the “Sitzer/Burnett” or “NAR Settlement.” If you have questions regarding selling your home, the following FAQs may be helpful:
Are the new rules already in effect?
- The new rules are expected to take effect on August 17, 2024. However, some states and brokerages are implementing changes ahead of this date.
Will I need to pay Realtor commissions if I sell my house?
- Yes. Typically, there are two agents involved in a real estate sale: one representing the seller and one representing the buyer. Both agents expect to receive payment for their services. If you are listing the property, the listing agent will charge a commission. Additionally, the seller may be asked to contribute toward the buyer agent’s commission, as has been the practice for some time. Since commissions are negotiable, it’s essential to discuss this with your Realtor®, as each situation is unique.
How will shopping for houses change?
- Moving forward, Realtors®/Buyer’s Agents will be required to have contracts with buyers before performing any work on their behalf, including showing houses. This requirement will apply to all Realtors® representing buyers.
If I buy a house, how will my agent be paid?
- Under the new policy, buyers will ultimately be responsible for their agent’s fees. However, when submitting offers, buyers can request that sellers contribute toward the buyer agent’s commission, similar to how sellers often contribute toward buyers’ closing costs. A Realtor® can help determine reasonable buyer concession requests based on the market, price point, and seller goals.
The most important takeaway is that the implementation of these policy changes is still in progress. This marks the most significant change to the real estate industry in decades, with more unknowns than certainties at this stage.
If you’re looking to sell or buy a new home in Minneapolis, Saint Paul, or the surrounding areas, please feel free to call, text, or email Shannon at your earliest convenience.
Shannon Lindstrom, Realtor®, CDRE®, CRS, GREEN, MILRES, MRP, VCA
RE/MAX Results
Direct: 612-616-9714
[email protected]
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