Alexandria, VA – Hello Alexandrians! We hope you had an amazing summer and made memories and enjoyed the season. In real estate, we are certainly in a brand-new season with many legal changes and challenges.
For many decades, and certainly since I have been in the business (in my 19th year) it has been customary for the sellers of a home to offer a cooperative buyer agency compensation to a buyer’s (also called selling agent) agent who represents the buyers’ fiduciary interests in a real estate transaction.
Up until August 17, 2024, and since the early 2000s, buyers were able to purchase a home without having to pay (generally) a buyer agent compensation. When these same buyers went to sell their home, they would customarily offer cooperative compensation to the buyer’s brokerage. Sellers in a sense got to take advantage of this customary system in place when they were purchasing their new home.
There has been a series of class action lawsuits and a lawsuit settlement which are changing the landscape of our industry and how buyers’ representation and compensation are handled. Details can be found online at these links:
Homebuyers: Here’s What the NAR Settlement Means for You
Home Sellers: Here’s What the NAR Settlement Means for You
What the settlement means for homebuyers:
- Written buyer-broker agreements are now required before touring a property. Note that we in the DMV have been using buyer broker agreements for years.
- Offers of compensation to Buyer’s Brokers cannot be advertised on the MLS. Sellers may still offer buyer agency compensation, but it is not required and is negotiable up until the contract’s full terms have been ratified.
- Offers of compensation can still be advertised off MLS, i.e. brokerage websites.
- Agents must disclose to prospective sellers and buyers that broker commissions are not set by law and are fully negotiable.
How will these legal changes impact the buying and selling process? Time will tell and we will update our Zebra readers as we work through these changes.
We plan to conduct business as we always have, leading with Integrity (Capital I intentional) first and foremost. We will continue to handle all clients and their transactions with transparency and honest communications while always representing our clients’ highest and best interests.
This is likely the largest investment of your lives, and you should absolutely have professional representation. It is a complicated and nuanced process with many pitfalls, twists and turns.
How can we help you; your family or friends navigate these new laws? We are happy to have a discussion anytime.
Article written by Lyssa Seward, Team Lead of The Seward Group at TTR Sotheby’s International Realty, Alexandria, Virginia 22314. The Seward Group offers full-spectrum concierge real estate service at all price points and would be honored to help you, a family member, or friend with any of your real estate needs. Email us at [email protected], visit our website at www.seward-group.com, or Call us at (703) 298-0562.
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