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The Bay East Association of Realtors is getting a head-start on changes coming to the home buying and selling process.
As part of a recent class action settlement agreement, the National Association of Realtors is implementing significant changes nationwide. According to NAR, these changes aim to enhance transparency, empower consumers and foster healthy competition in the real estate market.
Per the terms of the class action settlement, the changes are required to take effect by this Saturday (Aug. 17). Real estate agents in the East Bay have been required to adopt the new business practices as early as this week.
“Consumers will experience significant changes in how they buy and sell a home,” said Barbara Clemons, 2024 president of the Bay East Association of Realtors. “While cooperative compensation between a seller’s broker and a buyer’s broker will no longer be communicated through the Multiple Listing Service, it may still be negotiated directly between consumers and real estate professionals.”
Clemons said sellers and brokers can still offer compensation outside of the MLS. She explained that sellers may also communicate concessions to the buyer on the MLS, such as sellers paying for a buyer’s closing costs.
Home sellers can expect to see new real estate forms that will explain how commissions can be handled. These forms will specify commissions are fully negotiable, and they will disclose the amount or rate of compensation the agent will receive from any source. They will also clearly explain how an agent will be compensated, ensuring it is objectively ascertainable and not open-ended.
Home buyers can expect changes as well. The class action settlement requires prospective buyers to enter into a written agreement with their agent before they can tour a property.
“We’ve been working with the California Association of Realtors who are providing new versions of the purchase contract and other forms to help our members understand the changes,” Clemons said.
“Bay East Realtor members play a crucial role in one of the biggest decisions in their clients’ lives,” she added. “The new real estate practice changes will provide both home buyers and sellers with more information about the buying and selling process.”
Clemons observed that the real estate profession and how homes are sold and purchased is constantly evolving and the practice changes are part of that evolution.
Clemons said, “During my career as a Realtor, I’ve experienced lots of changes driven by technology, how we communicate with each other and buyer and seller expectations. I’m confident that our members will adapt quickly, and their clients will also understand even more the value a Realtor brings to all aspects of a real estate transaction.”
NAR is providing information about what these changes mean for their home buying and selling experiences in their buyers and sellers guides and at facts.realtor.
Editor’s note: David Stark is chief public affairs and communications officer for the Bay East Association of Realtors, based in Pleasanton.
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