New Real Estate Rules: Are They Really Helping Buyers and Sellers?

Back in March, the National Association of Realtors reached a settlement to resolve their high-profile antitrust lawsuit regarding real estate commissions. The news was widespread last spring, with many headlines predicting the end of buyer agency as we knew it and foreseeing massive changes for the industry. Those changes went into effect on August 17th, but have they really transformed the real estate landscape as predicted?

So, what exactly has changed?

Here’s a summary of the two major changes that are now in effect:

    1.    Compensation is no longer displayed on the MLS: This means buyers can no longer easily see what compensation is being offered to their buyer’s agent when browsing listings.

    2.    Buyer agency agreements must be signed before viewing homes: Buyers are now required to agree to compensation terms with their agent before they can even step foot into a potential home.

These new rules seem designed to increase transparency, but they may actually be having the opposite effect. Previously, buyers had insight into what compensation the seller was offering to their agent. Now, without this information readily available on the MLS, buyers are required to sign a buyer agency agreement that outlines how much they’ll pay their agent — often without knowing what the seller is offering.

How are these changes impacting buyers and sellers?

For many buyers, this process adds an extra layer of uncertainty. They’re being asked to agree to a compensation structure upfront, often without key details that used to be readily available. This shift could lead to less transparency, leaving buyers in the dark about how much compensation their agent is entitled to.

In the early weeks of implementation, there has been noticeable confusion. Different jurisdictions are interpreting these rule changes in their own way, leading to varied form changes and creating inconsistencies across regions. What was meant to clarify and improve the process may be making things more complicated for both buyers and sellers.

Will these changes benefit consumers?

While the intention behind these changes was to increase fairness and clarity, the reality seems more muddled. Buyers, sellers, and agents are left to navigate a new landscape that lacks the transparency it was supposed to provide. As the dust settles and the industry adapts, time will tell if these changes will ultimately benefit consumers or if they’ll lead to further confusion in the real estate transaction process.

What is clear, however, is that all parties benefit from straightforward information and consistent processes. Until the industry adjusts, both buyers and sellers should be aware of these new rules and how they may impact their transactions.