You may or may not recall that the real estate industry had a major change that went into effect nationally on August 17, 2024. We’re now about 60 days in, and . . . sellers are still selling and buyers are still buying! While there was much anxiety and anticipation about this change, I personally believe it has been for the best!
Buyers
The biggest changes (in Indiana) came on the buyer side of things, where exclusive buyer agency agreements became a state law effective July 1. Buyers are now asked to enter into a written buyer agreement before “touring” a home with their real estate professional, either in person or virtually. (These are not needed when simply visiting an open house.)
The agreement is completely negotiable between their buyer and real estate professional and must be clearly defined. And, while the agreement says you’re responsible for paying your chosen real estate professional, you can still request, negotiate for, and receive compensation for your real estate professional from the seller or their agent.
Sellers
As a seller, offers of compensation are not mandatory. You decide if that’s the best approach for selling your property. A great Realtor will help guide you on marketing strategies so that you can make a decision that works for you. As of August 17, 2024, offers of compensation are no longer allowed in a Multiple Listing Service (MLS); however, they can still be made off the MLS and shared through common marketing and communication methods.
Here’s what the settlement doesn’t change:
- Agents who are Realtors are here to help you navigate the homebuying process and are ethically obligated to work in your best interest.
- Compensation for your agent remains fully negotiable, and if your agent is a Realtor, they must abide by the REALTOR® Code of Ethics and have clear and transparent discussions with you about compensation. When finding an agent to work with, ask questions about compensation and understand what services you are receiving.
- You have choices. Work with your agent to understand the full range of these choices when buying a home, which will help you make the best possible decision for your needs.
Ultimately, a Realtor is a special kind of real estate agent: one who follows the National Association of REALTORS® Code of Ethics, including the first and primary pledge to protect and promote the interests of their clients.
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