In mid-March, the National Association of Realtors announced a settlement with groups of home sellers, wherein they agreed to end landmark antitrust lawsuits by paying damages and removing rules on commissions. Accordingly, buyer broker compensation is no longer allowed to be included on the Multiple Listing Service (MLS). But what does this mean for the Salt Lake City real estate market? It can all be pretty confusing—especially for non-realtors—so we thought we'd lay out a few rumors, a few facts, and some generally helpful information to help you stay informed and on top of this [potentially confusing] change, particularly in the world of home buying.
What's required...
Once the new rules go into effect in mid-July this year, listing brokers and sellers can continue to offer compensation for buyer broker services, but such offers cannot be communicated via the MLS. Members of the MLS acting on behalf of buyers would be required to enter into written agreements with their buyers prior to touring a home.
So why is buyer representation important?
Buyers can choose to represent themselves or be represented by the seller's agent (this is called "dual agency" and it's legal in Utah). That said, all real estate agents go through hours on hours of courses, continuing education, ethic classes, and background checks to ensure we're qualified and help us prepare for how to best represent our clients in what will likely be the biggest purchase they'll ever make.
The Homeworks team is more than qualified to help guide you through the process of buying a home, despite these changes (we can help you sell too). And we're always happy to answer any questions you may have or provide information. Pleaeel free to reach out anytime!