In recent months, we’ve been spreading the word to our members about the changes coming to the real estate industry Aug. 17. These changes will reshape how Realtors conduct business, not only with each other but also with consumers.
These adjustments are part of a broader initiative to enhance transparency and fairness in real estate transactions, stemming from a national settlement agreement related to broker commissions. Here is what’s changing and what consumers need to know.
Beginning Aug. 17, two significant changes will be implemented across all Multiple Listing Services systems that are critical for every real estate professional and consumer to understand – prohibition of offers of compensation on MLS and mandatory written buyer agreements.
While offers of compensation will be prohibited on the MLS, offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. Offers of compensation help make homeownership and the benefits of professional representation more accessible to buyers, including first-time homebuyers, increase homeownership opportunities for historically underserved groups, and benefit sellers by expanding the potential buyer pool and ensuring they receive the best offer possible for their property.
Agents working with a buyer will enter into a written buyer agreement before touring a home. The practice changes do not require an agency agreement or dictate any type of relationship. Resources are available to assist with implementation of the settlement terms – such as tips on clarity and emphasizing consumer choice and a “Written Buyer Agreements 101” resource are available at nar.realtor/the-facts/written-buyer-agreements-101.
These new practices emphasize transparency and consumer choice. These changes are designed to comply with regulatory requirements and empower consumers and ensure that real estate professionals can continue to provide high-quality, ethical service.
Written buyer agreements, for instance, will help cultivate transparent relationships between agents and consumers, allowing for clear negotiations and agreed-upon services and compensation.
Consumers can find additional information on what these changes mean for their home buying and selling experiences in NAR’s buyers and sellers guides, found at nar.realtor/the-facts/homebuyers-what-the-nar-settlement-means and nar.realtor/the-facts/home-sellers-what-the-nar-settlement-means. Please visit facts.realtor for the latest updates on the settlement and practice changes.
Despite these changes, the core mission of Realtors remains unchanged – to guide clients through the complex and often emotional journey of buying or selling a home with expertise and integrity. Realtors are more than just facilitators; they are trusted advisers who play a critical role in one of life’s most significant transactions.
Being a Realtor has always been about more than just closing deals. It’s about stewardship, guiding our clients through one of the biggest decisions of their lives with care and expertise. These changes? They’re just new ways for us to demonstrate our unwavering dedication to that mission. #ThatsWhoWeR
Founded in 1912, Greater Chattanooga Realtors is the voice for real estate in Greater Chattanooga. A regional organization with nearly 3,000 members, Greater Chattanooga Realtors is one of some 1,200 local boards and associations of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors service Hamilton and Sequatchie counties in southeast Tennessee and Catoosa, Dade and Walker counties in northwest Georgia.