The Southwestern Michigan Association of Realtors is advising homebuyers and its members of new rules that have taken effect for home sales following a legal settlement involving the National Association of Realtors.
Southwestern Michigan Association of Realtors Executive Alan Jeffries tells us the settlement involved broker commissions. Under the new policies, offers of compensation to realtors will be prohibited on Multiple Listing Services, meaning buyers will have to negotiate the commission of their realtors separately.
“The old way was when a realtor listed a house, usually they would offer some type of compensation to a buyer’s agent or to another broker that brought them a buyer, and that was listed in the MLS and you could see what that amount was,” Jeffries said. “That has been eliminated as of August 17. So now, in order to find out if the seller is offering any compensation for a buyer’s agent to bring a buyer, they now need to call and negotiate that up front.”
Jeffries says this does make things more complicated for buyers and sellers. Also, he says realtors will now have to enter into a written buyer agreement before touring a home with a buyer.
Jeffries says while the changes make things more complicated, the Southwestern Michigan Association of Realtors accepts the new policies of the national association.
Meanwhile, Jeffries tells us the Southwest Michigan real estate market is going strong with increased sales and inventory in July.
Below is the full Southwestern Michigan Realtors Association message to buyers:
Southwestern Michigan Association of REALTORS reminds members, real estate professionals and consumers that on August 17, 2024 the practice changes following NAR’s Settlement Agreement that would resolve claims brought on behalf of home sellers related to broker commissions will be implemented across the country.
Realtor® MLSs (those owned exclusively by one or more Realtor ® Associations) – must implement the changes by this date to remain in compliance with NAR policy.
Under the settlement, the following practice changes will take effect:
Offers of compensation will be prohibited on Multiple Listing Services (MLSs). 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.
“To stay ahead in an ever-evolving market, it’s imperative that we embrace change and innovation,” said Alan Jeffries, CEO of Southwestern Michigan Association of REALTORS®, “Our commitment to adapting and enhancing our practices is crucial not just for our success, but for the continued excellence we provide to consumers. REALTORS are more than just facilitators of transactions; we are trusted advisors dedicated to guiding our clients through one of the most significant investments of their lives. By implementing thoughtful changes and leveraging our expertise, we ensure that we are delivering unparalleled value and support to those we serve.”
Consumers can find additional information on what these changes mean for their homebuying and selling experiences in NAR’s buyers and sellers guides. For NAR members, the practice changes are outlined in detail here, and detailed information is available in NAR’s FAQ. Please visit facts.realtor for the latest updates on the settlement and practice changes.
