The National Association of Realtors (NAR) requires the implementation of two policy changes no later than Saturday, August 17.
San Luis Obispo County real estate agent Christa Lowry explained the two changes taking place.
“The first change is that buyers will not be able to enter a home without a written and signed buyer’s representation agreement with their buyer’s agent,” Lowry said.
That agreement negotiates a percentage of the sale the buyer will pay their agent. Prior to this rule, buyers could opt out of paying the buyer a commission.
“They had the option to not, but it was standard that they did,” Lowry said.
She added that while this new change requires the buyer to pay the buyer’s agent a commission, that commission fee is agreed upon by both parties.
“It’s a negotiable amount. That’s the most important thing to know,” Lowry said.
The second change prevents a listing agent from disclosing an agent’s commission or concession on the Multiple Listing Service. Instead, buyers will need to contact the listing agent directly about commission or concession fees.
“Buyers used to be able to call an agent and say, ‘Hey, I’d like to see five properties.’ There [was] no written agreement. There [was] no talk about commission or concession,” Lowry said. “Now they have to sit down and have that conversation with a buyer’s agent.”
Jenny Heinzen works as a broker for Vineyard Professional Real Estate, a luxury real estate firm in Paso Robles.
She said most of these changes involve a restructuring of business.
“It’s just kind of a work-around with the paperwork,” Heinzen said.
However, she said first-time home buyers could be impacted by the changes.
“A lot of times first-time home buyers are stretching for payment and if those first-time home buyers are asked to pay their buyer’s agent commission, that affects their down payment capabilities,” she said.
Heinzen noted that those costs can be avoided by structuring agreements differently.
“Our goal on our listings and most of the agents within the county is to get compensated by the seller,” Heinzen said.
She said for those new to buying a home or looking for help navigating these changes, finding the right agent is key.
“It’s going to be really important to work with good, experienced agents who are selling the types of property that you want to buy or sell,” Heinzen said. “Find a good agent and a good agent will educate you.”
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