New real estate law starting august 17, What You Should Know.
Changes to regulations impact California home sellers and buyers. The goal is to increase transparency and fairness in real estate transactions.
Impact to Sellers: Managing Buyer’s Agent Commissions:
- Sellers will no longer automatically pay buyer's agent commissions.
Sellers will be able to:
- Offer to Pay the Buyer’s Agent Commission: You can still choose to pay the buyer's agent commission. This may make your property more appealing, increasing both the sale price to you and the affordability for the buyer.
- Negotiate Compensation with Buyers: Negotiate with potential buyers to negotiate an arrangement to fully or partially cover the buyer's agent's commission.
- Not pay the Buyer’s Agent Commission: Opt not to offer any commission to the buyer’s agent and let the buyer cover it entirely, although this may reduce your pool of interested buyers.
Impact to Buyers: Key Changes
- Mandatory Buyer Representation Agreements: Buyer agents must now have a signed agreement before showing any properties. The agreement outlines the agent's commissions and duties with the buyer.
- Guarantee of Comprehensive Service: This agreement is for three months, and aims to ensure you receive thorough assistance and expert advice, including researching properties, arranging viewings, market analyses, negotiating offers and guiding you through the closing process.
- Elimination of Commission Offers on Multiple Listing Service: Instead, agents must negotiate their fees directly with their clients, ensuring a more transparent process.
For more detailed information or to understand how these changes impact the buying or selling process, reach out to me directly. As your real estate resource, I am here to ensure you navigate these changes with confidence and make the best decisions for your future. Rely on me as your trusted advisor.