This past week we had some important changes take place in the real estate world. As a member of California Regional MLS, these changes took place on August 13. If you’ve been on your Instagram Explore feed or keeping track of the real estate headlines, then you most likely have seen information about “changes in real estate agent commissions.”

What do the National Association of Realtors (N.A.R.) changes mean for homebuyers and home sellers? First things first — We are always happy to sit down with you and explain the changes in depth. We are full-time REALTORs and we love our role as an advocate for our clients. Part of advocating for our clients mean we educate and guide you through the process. 

From National Association of REALTORS: 

“Here is what the settlement means for homebuyers:

  1. You will sign a written agreement with your agent before touring a home.
  2. Before signing this agreement, you should ensure it reflects the terms you have negotiated with your agent and that you understand exactly what services and value will be provided, and for how much.
  3. Written agreements apply to both in-person and live virtual home tours. You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services.”
  4. You can negotiate with the Seller in your offer to pay your Buyer’s Broker fee and/or request concessions from the Seller to pay your closing costs.
Here is what the settlement means for home sellers
  1. You, as the Seller, sign a listing agreement with your real estate agent for the amount of the listing side of the transaction, not for the total due to the listing broker and buyer’s broker.
  2. As always, commissions are not set by law and are fully negotiable.
  3. Buyers may request for you to pay their buyers agent fee and/or may ask for seller concessions.
  4. Concessions are not the same thing as commissions. Concessions go directly from the Seller to the Buyer; and the Buyer can use concessions for their costs in the transaction, including closing costs and any broker fees. 

Our office lists homes every week across Southern California. There’s a saying in real estate that, “All homes sell”. If you are concerned about selling because you have some deferred maintenance or you are trying to time a move out of state, reach out to us so we can help answer your questions. 

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This content is not the product of the National Association of REALTORS®, and may not reflect NAR's viewpoint or position on these topics and NAR does not verify the accuracy of the content.