New Real Estate Changes That Impact Buyers and Sellers
As of August 17, 2024, new practices in real estate transactions have taken effect, introducing greater transparency and clarity for home buyers and sellers. These updates give you more control over your real estate journey, ensuring you fully understand the services provided and how compensation works.
Here’s what you need to know about these changes and how they may affect your next move:
Key Updates for Home Buyers
If you’re working with an agent who uses a Multiple Listing Service (MLS)—a local marketplace where real estate professionals share property listings—there are new requirements:
- Written Agreements: Before touring a home, you’ll need to sign a written agreement with your agent. This ensures you understand:
- The specific services your agent will provide.
- The exact amount or rate of compensation, or how it will be determined.
- That broker fees and commissions are fully negotiable—not set by law.
- Clear Terms: Agents cannot receive compensation beyond what is agreed upon in the written agreement. This eliminates surprises and ensures transparency.
- Virtual Tours: Written agreements are required for both in-person and virtual home tours. However, casual conversations at open houses or inquiries about services don’t require an agreement.
Key Updates for Home Sellers
As a home seller, you’ll now have more flexibility and options:
- Broker Compensation: You are no longer required to offer compensation to buyer brokers when listing your home on an MLS.
- Compensation Communication: Offers of broker compensation can no longer be displayed on the MLS. However, you can still offer compensation outside the MLS if you choose or provide buyer concessions (e.g., closing cost contributions) directly on the MLS.
- Enhanced Negotiability: These changes encourage open discussions between sellers, agents, and buyers to create agreements tailored to your specific needs.
What This Means for You as a Bay Realty Michigan Client
At Bay Realty Michigan, we’ve always prioritized transparency and client-focused service. These changes align with our mission to make your real estate experience simple, straightforward, and stress-free.
- For buyers: We’ll guide you through the new written agreement process, clearly explaining every step and ensuring you feel confident in our partnership.
- For sellers: We’ll work with you to create a custom plan that reflects your preferences for marketing and broker compensation, maximizing your home’s appeal.
Key Takeaways
- Written agreements protect both buyers and sellers by clearly defining services, compensation, and expectations.
- Broker fees remain fully negotiable, empowering you to decide what works best for you.
- Transparency is at the heart of these updates, giving you more confidence and control in your transaction.
📞 Have Questions?
Our team at Bay Realty Michigan is here to help you navigate these changes with ease. Whether you’re buying or selling, we’ll provide the expertise and support you need to achieve your real estate goals.
👉 Learn more about these changes and view our listing and buying documents here:
Bay Realty Michigan Seller Documents
Bay Realty Michigan Buyer Documents
Contact us today at 989-385-1311 or visit bayrealtymi.com.