The revised guidelines are aimed at reducing antitrust concerns and fostering healthier competition, but some worry about the potential burden on first-time buyers or less experienced agents.
“The following questions will help homebuyers and home sellers better understand the recent practice changes in residential real estate and what the changes mean for them,” NAR wrote on its FAQs page. “While these are intended to provide an overview, real estate transactions can take many forms.”
Previously, buyers often assumed that brokerage services were free to them since the seller typically covered the costs. With the new structure, buyers are expected to negotiate and agree on the commission for their agents in advance, which may affect how real estate transactions are conducted moving forward.
One of the more controversial aspects of the settlement is the removal of commission information from multiple listing services (MLS). Previously, MLS listings would show how much a buyer’s agent could expect to be paid. Now, offers of compensation will no longer be displayed on MLS platforms, adding complexity to transactions and requiring off-MLS negotiations between agents and clients.
For sellers, the FAQ stressed that they still have the option to offer compensation to buyer agents, though this must be done outside the MLS system.
Source: mpamag.com