New Laws Will Change How You Shop For a Home
New laws effective January of 2024 will change how you do real estate, but there’s nothing to be afraid of! Read on to see how these laws will impact you as a buyer OR as a seller.
What are the Changes?
Due to ongoing litigation over communication and transparency concerns with major players in the real estate industry, WA State and the NWMLS are implementing changes to some real estate forms. These changes mostly center around commissions, how we draw up forms, inform clients, and how we proceed with a new buyer. The new laws will require that every buyer sign an agency agreement at the earliest possibility when working with a real estate agent. This agency agreement can be exclusive or non-exclusive, but defines commission payment, discusses and defines dual agency, and clarifies whether an agent will be paid from more than one source.
How This Impacts Buyers:
Gone are the days where buyers can hop from one agent to the next! The new, required buyers agency agreements define the minimum length of time a buyer will be committed to an agent (which provides wonderful security for those of us working as brokers!). An exclusive agency agreement (which will typically be my standard) eliminates the possibility of clients using an agent for multiple showings and searches and then ghosting for a different agent. Commissions are also discussed in detail! Did you know it is not a requirement for sellers to pay a buyer’s agent commission? The new agreement will define an agent’s minimum commission rate, whether the buyer wants to look at homes that don’t offer a buyer’s commission or not, and how to proceed if an offer is made on a home that does not include their agent’s commission.
While this may sound intimidating, ultimately the new rules cultivate greater transparency and security as well as encourage real estate agents and buyers to develop an ongoing working relationship from the early stages - and the more involved we are and the longer we work with our clients, the more we understand their needs and the better the service becomes!
How This Impacts Sellers:
Sellers are not required to offer a buyers agency commission - this is already the precedent, but the conversation surrounding the topic has become more forefront and transparent (which is never a bad thing). While most agents will (and should because it’s in the client’s best interest) encourage sellers to still pay a buyer’s agent commission, all facets of this topic are now front and center in the listing agreement.
How You Can Set Yourself Up for Success:
Buyers: Let this be your encouragement to do the thing I tell EVERY prospective buyer to do: interview agents. Look up their websites, listings, see how you vibe in conversation. Request to go on 1 showing with them to see if it’s a good fit. Do your homework and pick the agent you feel is informed and that you connect with. Then stick with that agent! Let them get to know you and your needs in a way that empowers them to give you the best service possible!
Sellers:
Have conversations with your agent about commissions and why both seller and buyer commissions are important and in your best interest. Paying real estate agents can feel expensive and stressful! Choosing an agent who has resources, tools, connections, and top level communication can help with ensuring you feel your investment is worth it.
If you’d like to start a conversation with me, please reach out via my contact form OR via phone or email at 360-500-2791 | chelsearoyer@nwhometeam.com
