NEW MEXICO (KRQE) – Some big changes are coming for people looking to buy or sell a home. The new rules will affect how realtors do their work. While some claim it could reduce the cost of buying or selling a home, others worry realtors will leave the industry.
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The National Association of Realtors settlement agreement comes after a federal lawsuit. That agreement brings new rules for sellers, buyers, and realtors. “With any change, there’s always the sense of panic and uncertainty, but I truly feel the spirit of this settlement is a good thing,” said President of the Greater Albuquerque Association of Realtors Morgan Cannaday.
The National Association of Realtors reached a settlement after a federal lawsuit was filed over how home sales are done. The new rules will change realtor commissions. Cannaday said realtors in the state are getting ready for what this means.
“The two biggest changes that we’re seeing in our industry right now required by the settlement, the first of which is that buyer broker compensation can no longer be communicated through our multiple listing service,” said Cannaday.
The second big change is before touring a home, a buyer will now be required to sign a buyer agreement with their realtor. “The intent of that is not to lock them into to some type of long-term agreement. It’s specifically pro-consumer in an attempt to be more transparent with buyer broker commissions and how they’re being paid,” added Cannaday.
Now that home buyers and sellers will negotiate fees upfront, there are some concerns with how it could impact first-time buyers. “If they have saved up for years and years to be able to have enough for a down payment, and if they have a seller on the other side of the transaction unwilling to help them assist with their buyer broker compensation, they either have to find a different house or have to go through that process without their own representation.”
The new rules started locally on August 1 ahead of the national deadline on August 17.