The Biggest Real Estate Changes Starting on August 17th
Here’s what you need to know.
Starting August 17, 2024, homebuyers across the United States will have to sign contracts detailing how they’ll compensate their agents. Changes like this will essentially change the buyer-agent dynamic.
Buyers’ real estate agents associated with the National Association of Realtors (NAR) will have buyers sign contracts before they show them any houses.
The Multiple Listing Service (MLS) will no longer be able to display the buyer’s agent commission.
Home buyers will have to sign a written contract with an agent before looking at a house for sale.
Buyers are encouraged to sign an agreement with one agent and work with that person to view multiple properties, rather than signing new paperwork each time they visit a house with a different agent.
With the new rules, buyers will also have to pay their agent’s commission which was previously covered by the seller. This added expense could push buyers towards alternative real estate models.
The real estate market is already struggling, with home sales dropping to a six-month low in June and prices hitting record highs. Buyers and agents alike are bracing themselves for the confusion that lies ahead.
The Consumer Federation of America (CFA) expects that these changes will lower commission rates overall and end up saving consumers tens of billions a year in lower commissions. They have also pushed for clearly stated broker's fees on the contracts as a full figure or hourly rate.