There has been a lot of news lately about pending changes coming to the real estate industry and what these changes mean for homebuyers and sellers. With over 50 years as a dedicated REALTOR® in Prince George’s County, Maryland, I’d like to address the subject.
Some media outlets have suggested that home prices will drop, and home sellers will save money. Think about it, those statements are contradictory. Lending affordability, inventory, and location, location, location, are the determining factors in home price evaluations. Not industry business models and court settlements.
Because of a recent settlement agreement between the National Association of REALTORS® and home sellers two things are changing. First, properties listed on the multiple listing service or MLS (the database used by real estate professionals) will no longer include an offer of compensation to buyer’s agents.
While broker commissions have always been negotiable, this new rule clarifies that buyers and their broker representatives will need to negotiate compensation directly, without relying on offers made through an MLS. Meaning, real estate professionals will no longer communicate offers of compensation via the MLS. However, to help attract buyers, sellers can still offer buyer concessions, such as covering closing costs, which can be listed on the MLS.
Second, homebuyers who want to work with a broker will need to sign a written agreement before touring a home.
In Maryland, nothing changes, real estate licensees are already required to use a written buyer’s representation agreement when working with potential buyers. This document establishes a clear understanding of the broker’s role, responsibilities, and compensation from the start. Buyers will discuss and agree on these details before beginning their home search. This upfront agreement helps ensure that there are no surprises regarding fees or services provided.
Historically, nearly 9 in 10 homebuyers have opted to work with a real estate agent or broker, as they navigate the complexities of purchasing a home. REALTORS® help their clients navigate a maze of forms and complex paperwork; coordinate with lenders, inspectors, appraisers, escrow companies, and other professionals to ensure a smooth transaction. They represent consumer interests in pricing, negotiation, and closing, making the process less daunting and more efficient.
While the recent settlement brings changes to our industry, it reinforces the importance of clear communication and agreement between brokers and their clients. Homebuyers are encouraged to ask questions about their agent’s services and compensation, and to feel confident in negotiating terms that work best for them. As REALTORS®, our commitment to serving your best interests remains steadfast.
For more information or to find a REALTOR® who can help you navigate these changes, please visit our website (PGCAR.com), or contact the Prince George’s County Association of REALTORS®.
The Voice for Real Estate in Prince George’s County
PGCAR is the voice for REALTORS® in Prince George’s County, Maryland. Representing more than 3,500 real estate professionals in the national capital area, PGCAR is an affiliate of the Maryland and National Association of REALTORS®. We are proud to serve our members and our community and work to ensure professionalism in the industry. We proudly endeavor to promote and protect homeownership and private property rights.