NAR Settlement and Utah Real Estate
NAR Settlement and Utah Real Estate
A shakeup is looming for the real estate industry as new rules take effect August 17 and that change how agents get paid. The new rules, resulting from the National Association of Realtors (NAR) Settlement, are set to redefine the landscape for all U.S. realtors, including us in Salt Lake City. 🏠✨
What's Changing?
As of August 17th, ALL realtors nationwide, will be required to adhere to updated regulations that aim to enhance transparency and fairness in real estate transactions. This change impacts both buyers and sellers, making it a significant shift worth understanding.
How Does This Affect You?
If you're looking to buy or sell here in Salt Lake, Utah or even in the US, these changes could influence the process and responsibilities of your real estate agent. The adjustments are designed to ensure that you, as a client, receive honest and fair treatment throughout your real estate journey.
Why Should You Care?
Understanding these new regulations can help you navigate your next real estate transaction with more confidence. Whether you're buying your first home, looking to sell, or just keeping an eye on the market, being informed will empower you to make better decisions.
What happens Aug. 17?
Aug.17 is the deadline for two major changes: First, buyers must now enter into a contract with an agent before that agent can show them any properties. Some states such as us here in Utah already require this, but now, it’s required for any agent who’s a member of NAR (which is a whopping 1.5 million agents in America) before we open a door!
Also on this date will be a big shift in agent commissions. Prior to the settlement, NAR members who listed properties included offers of shared commissions within their local multiple listing services – the platforms on which most homes are listed. It's a tool real estate professionals use to view and share information regarding property listings. The exact amount varied, but this led to most sellers paying about 6% of the home’s sales price, with 3% going to their agent and 3% to the eventual buyer’s agent.
Starting on the 17th, those advertised offers of compensation are no longer allowed in an MLS. While sellers and their agents can still offer to pay a buyer’s agent's fee and should, that must happen via outside negotiations. That could mean that in some transactions, sellers pay NO portion of the buyer’s agent fee at all – putting that burden fully on the buyer instead. The buyer could then negotiate and pay their agent’s fee out of pocket or go without an agent, managing their transaction on their own.
More unique pricing structures – aside from just straight commission percentages – could become more prevalent after Aug. 17 too. More buyer’s agents may offer a la carte pricing, flat fees and hourly services, among other thing, to better fit consumers' budgets and needs.
Have Questions?
Got queries on what these changes mean for you? Wondering how to best prepare for buying or selling under these new conditions? Send us a direct message, or reach out through our contacts. We're here to help you decode these updates and continue providing the top-notch guidance you’ve come to expect from us.
Stay tuned for more detailed breakdowns of the NAR settlement impacts and tips on how you can adapt. Remember, Salt Lake Home Pros - Fathom Realty is always here to support your real estate needs in Salt Lake City and surrounding areas.