Birmingham Real Estate Agent Provides Insight on New Realtor Rules Effective August 17
BIRMINGHAM, Ala. – A significant change is about to sweep across the real estate industry and could alter the way you approach house sale and purchase. Local real estate authority, Jasmine Kemp, an agent at Exp Realty, provides her professional perspective on the impending changes set to take effect on August 17.
New Regulations Enhance Transparency
The primary goal of the soon-to-be-implemented changes, according to Kemp, is to enhance transparency within the real estate sector. “As agents, we can no longer show you a property without having first reached some form of mutual understanding, which must be established in writing,” she pointed out.
“We will not set a for-sale sign on your lawn before having sat down with you to discuss expectations, rights, and the next steps. This requirement will now also apply to buyers,” she further explained.
Kemp believes the up-gradation in the rules will ensure more transparency about the commission plans, both for buyers and sellers alike. She noted, “The most critical thing to understand is what remains unchanged. Commissions have always been negotiable, and they will continue to remain so.”
Major Changes to Commissions
Historically, a seller’s agent would charge the seller a stipulated 5 to 6 percent commission on the home’s selling price, a portion of which would be shared with the buyer’s agent. However, under the revised regulations, sellers will no longer have to cover the commission for the buyer’s agents.
This consequential alteration originates from a settlement that the National Association of Realtors announced in March. Kemp describes a fundamental shift in the way commissions will now be arranged, differing substantially from the former customary practices.
“Previously, we negotiated both the listing fee and the buyer’s agent fee upfront. The predetermined sum would then be paid irrespective of the contract price or the appraisal value. While these numbers sometimes varied, there was generally a consistent rate across the board,” she said.
New Changes Bring New Opportunities
Kemp expresses a compelling take on the forthcoming changes, observing an opportunity to redefine the public’s perception of realtors. “A buyer’s agent is so much more than just someone who opens the door. That is the very least that we should be doing for you. Now we have an opportunity to sit down with buyers, explain our value, and then deliver the service that proves we earn our keep,” she explained.
Ultimately, she emphasized that your agent’s level of involvement in the home buying or selling process depends predominantly on the previously discussed and agreed-upon expectations, and that naturally varies from person to person.
These comprehensive changes aim to make the real estate industry more transparent, with greater flexibility in commission negotiation, rendering an enhanced home-buying experience for everyone involved.
Disclaimer
This news is based on the most recent information available as of the time of writing and may be subject to change after the publish date.
