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NAPLES, Fla., Aug. 16, 2024 (GLOBE NEWSWIRE) -- The National Association of Realtors settlement terms significantly change how all REALTORS approach their work with customers, affecting both home buyers and sellers nationwide.
Here is what the public needs to know:
Key Changes:
1. Seller Paid Compensation Promotion: Going forward, sellers electing to offer compensation to a Realtor representing a buyer who purchases their home may no longer display such an offer in the Multiple Listing Service (MLS). Realtors must communicate such offers through other means, such as direct communication or via a company website.
2. Compensation Agreements: Any representation of compensation offered to a buyer broker from a seller or the listing brokerage may not be relied upon unless confirmed in a signed Compensation Agreement before an offer.
Sellers should know that even if they choose not to offer compensation to a buyer broker when listing their home, they may very well face requests to do so during the selling process in two ways:
- Buyer brokers may request, in advance of an offer, that the seller pay their fee through a signed Compensation Agreement
- Buyers may elect to include a clause in an offer making the contract contingent upon the seller covering their Realtor's fee.
3. Buyer-Broker Agreements: Realtors will now be required to have a signed Representation agreement in place with a buyer prior to showing homes. This agreement must clearly outline the terms of service, including the professional service fee to be earned by the Realtor which will be the buyer's responsibility. That fee would be offset by any amount paid by the seller in a transaction.
Preparing Buyers and Sellers for the Changes:
These changes represent more than just additional documentation, as they impact the way customers will transact real estate and their relationships with real estate professionals. Intended to provide extra customer transparency, they will ultimately complicate the selling and purchasing process. Accordingly, there will be a heightened need for in-depth consultations with their real estate professional before beginning a home journey.
Premier Sotheby's International Realty guides its customers through these changes with the same dedication and expertise that have always defined its approach. They ensure buyers and sellers are well-informed and confident in their real estate decisions, regardless of industry shifts. Customers can trust in the company’s commitment to deliver the best outcomes.
Quotes from Budge Huskey, president and CEO of Premier Sotheby's International Realty:
"Unfortunately, many reports about these industry changes have incorrectly stated that sellers can no longer compensate the Realtor who brings a buyer. This is simply not true. Today, most homes on the market still offer buyer-broker compensation. In the future, sellers will need to decide whether to continue this practice and, in doing so, should consider how their home will compare in appeal to competing properties. Additionally, individual real estate brokerage companies can establish their requirements on this topic as a condition of accepting a listing."
"Another aspect of the changes is the obligation to disclose that real estate fees are negotiable. They always have been. However, like any business, every real estate company can establish its fee structure and standards. As always, buyers will encounter a variety of fee structures based on the scope of services provided, the reputation and strength of the brokerage company, and the qualifications and experience of the real estate professional. One thing is certain: there is indeed a significant difference in Realtors, and that difference will determine both the outcome and the quality of the experience."
"As someone who has represented buyers and sellers throughout my career, I fully support any change that raises the standards within our industry, requires greater professionalism from Realtors, and ultimately leads to a more elevated experience for the customer. Some aspects of these new changes will create greater transparency, which is a positive. However, other elements will serve to complicate the home-buying process and limit the options and flexibility customers previously enjoyed."
"Much of the justification for these changes stems from a lack of knowledge and misperceptions of an industry that is highly efficient and achieves consistently high levels of customer satisfaction. And in what other industries will you find a professional investing countless hours at no charge unless the customer's objectives are met?"
About Premier Sotheby's International Realty
Headquartered in Naples, Florida, Premier Sotheby's International Realty has over 1,400 sales professionals in 40 locations throughout Florida and North Carolina. Premier Sotheby's International Realty also benefits from an association with the storied Sotheby's auction house, established in 1744. The brokerage was founded by The Lutgert Companies, a prominent member of Southwest Florida's business community since 1964, and is proudly associated with Peerage Realty Partners. For more information, visit premiersothebysrealty.com.
Media Contact:
Elise Ramer
elise.ramer@premiersir.com
P: 941.587.0257
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/78c98fb1-5b34-438c-bccc-9f7176280897
