Big Changes For Homebuyers and Sellers
Welcome to Saving Money with Andrew!
On August 17th, two big changes hit residential real estate nationwide. According to the news release from the National Association of Realtors:
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.
Agents working with a buyer must enter into a written buyer agreement before the buyer can tour a home. The practice changes do not require an agency agreement or dictate any type of relationship.
These changes basically mean that (i) home listings can’t say how much of a commission is offered to the buyer’s agent, and (ii) home buyers must have a written agreement with their agent before touring homes.
The WSJ’s great article on the topic Cutting Fees. Going It Alone. New Rules Are Changing How We Buy and Sell Homes. indicates these changes are already starting to drive commissions down (as some regions of the US implemented these changes earlier in the summer). In one story they cite, a seller of a condo north of New York City listed a condo with a low-fee brokerage and agreed to only pay buyers’ agents 1.5% of the purchase price, resulting in significantly lower fees overall.
It will be interesting to see how these changes affect the market. Personally, the next time we’re looking to buy or sell a home, we’re going to be much more cost-conscious about our commissions, particularly if we use a buyer’s agent.
And now, Andrew’s pick(s) of the week:
Just over 10 years ago, the Grand Budapest Hotel hit theaters. Rewatching it, it’s even better than I remembered, and is now on a number of “best films of the 21st Century” lists. If you’ve never seen it, you really should!
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