Big Changes in Real Estate: What You Need to Know in Savannah

Back in March, the National Association of Realtors (NAR) agreed to a settlement that’s shaking up the real estate industry. This deal not only included a financial settlement but also introduced some changes to real estate practices, particularly around transparency in how agents get paid.

So, what does that mean for you if you're buying or selling a home in Savannah? Here are the two biggest changes you might be hearing about:

1. Offers of compensation for buyer brokers or buyer agents can no longer be made on the Multiple Listing Service (MLS).
2. Real estate agents must now have a written agreement with a homebuyer before showing them any properties.

These changes might sound daunting, but don't worry—most of the professionals in our industry are still committed to providing the top-notch service you've come to expect. To help you navigate these new waters, I’ve broken down six key things homebuyers and sellers should know as we head into these changes on August 17, 2024.

What Homebuyers Need to Know

1. Homebuyer Agreements Are Now a Must

Before you tour a home, your real estate agent will need a signed agreement from you. But don't stress—this doesn't mean you're locked in forever. These agreements can be as short as a single property visit, a week, or longer if you choose. When you’re interviewing buyer agents, be sure to ask about the different options available and fully understand the services included.

2. Know Exactly What You're Paying For

The new agreement will clearly outline your agent’s compensation. If something isn’t clear or if you have questions, ask for details—and make sure everything is in writing before you sign. Remember, just like before, agent fees are negotiable. This settlement hasn’t changed that.

3. Seller Deals Are Still on the Table

Sellers can still offer to cover some of your closing costs, including your buyer agent’s fees, as an incentive. Even though these offers won’t be listed on the MLS anymore, your agent can still find out if the seller is offering buyer agent compensation—or even negotiate it on your behalf when you’re ready to make an offer.

What Home Sellers Need to Know

1. You’re Still in Control

You remain in the driver’s seat when it comes to deciding whether or not to offer compensation to buyer brokers. When you’re interviewing your listing agent, ask about the pros and cons of offering this compensation to help you determine the best strategy for your situation.

2. Clear and Transparent Terms

Your listing agent must now get your approval before making any payment offers to buyer brokers. If you choose to offer compensation, the terms must be clear, written down, and transparent—including how much will be paid and how.

3. MLS Rules: The Do’s and Don’ts

As a seller, you can no longer advertise buyer broker compensation on the MLS. However, you can still list buyer concessions, like covering some of their closing costs. This change simply means that compensation offers must be handled off the MLS.

Final Thoughts

These changes are all about making the process more transparent when it comes to how agents get paid during a home transaction. With more options on the table, it’s essential to understand them all. By partnering with a knowledgeable and experienced real estate agent, you can ensure that your home buying or selling experience in Savannah remains smooth, positive, and successful.

For more details on these changes, visit facts.realtor or schedule a discovery session with me here. Let’s navigate this new landscape together!