Since March of this year, it has been next to impossible to watch/read any national or local news without getting blasted with news about pending changes in the real estate industry.
On March 24, the National Association of Realtors proposed a settlement in a lawsuit they were facing regarding the disclosure and payment of real estate commissions. Under the terms NAR proposed, Realtors must have written Buyer Broker Agreements with all buyers they represent that disclose the commission amount the broker is requesting for their services.
Commissions have always been, and will remain, a negotiable charge. These new changes will bring transparency to the commission amounts paid to both the listing and selling broker and clarify who will pay the commissions. The changes will also add some new paperwork to each listing and sale transaction, but the basic processes will change very little for each party to a sale.
These changes go into effect in August on a national level. Buyers will now be required to sign a Buyer Representation Agreement with a licensed agent prior to physically viewing any homes currently listed in the multiple listing service. These agreements may be Exclusive or Non-Exclusive and detail the compensation the Buyer Agent requests for representing the buyer.
In addition, in the 2024 session, the Oregon legislature passed HB 4058 which reinforces some of the same protections as the NAR proposal and adds extra restrictions or guidelines for Oregon real estate agents. These changes go into effect on January 1, 2025.
Social media posts and some news outlets have grossly exaggerated the intentions and outcomes of these changes leading to confusion and concern for both buyers and sellers already hesitant to enter the market.
If you are concerned, or confused, about any of these changes, that’s why Wise Move Real Estate is here! Our Brokers are experienced and well-trained to understand and explain these changes and all phases of a real estate transaction from both the seller and buyer perspective. Now, more than ever, a trusted real estate Broker is your best advantage when you contemplate buying or selling a home. Reach out and let us help!
