On August 17th, a significant change in real estate law came into effect, impacting how real estate agents are compensated. The National Association of Realtors (NAR) and other relevant governing bodies have implemented this new law to bring more transparency and fairness to the real estate transaction process. As your dedicated Realtor, I, Nathan Derry with JohnHart Real Estate, want to ensure you are fully informed about this change and how it might affect your real estate transactions.

What Is the New Agent Compensation Law?

The new agent compensation law is designed to increase transparency around the fees and commissions that real estate agents earn during the buying and selling process. The primary aim is to make it clearer to both buyers and sellers how much their agents are being paid and where these payments are coming from. This change addresses long-standing concerns about the opacity of agent commissions, ensuring that clients are better informed about the financial aspects of their real estate deals.

Key Changes

1. Disclosure of Commissions: Agents are now required to clearly disclose their commission rates upfront, ensuring clients are fully aware of how much they will be paying for real estate services. This disclosure must be presented before any agreements are signed, giving clients the opportunity to negotiate or shop around for different rates if they choose.

2. Negotiability of Commissions: Under the new law, commission rates are explicitly negotiable. This means that clients can have open discussions with their agents about the commission structure and potentially negotiate a lower rate, depending on the services provided and market conditions.

3. Direct Payment of Buyer’s Agent Commission: In some cases, the new law allows for the buyer's agent commission to be paid directly by the buyer rather than through the seller. This change is intended to separate the buyer's agent's compensation from the purchase price of the home, potentially leading to more competitive pricing and clearer cost structures.

4. Increased Transparency in MLS Listings: The Multiple Listing Service (MLS) now requires more detailed information about agent commissions to be included in property listings. This ensures that both buyers and sellers can see exactly what commissions are being offered and paid, promoting fairness and transparency in the marketplace.

Why This Matters

The implementation of this new law is a crucial step toward leveling the playing field in real estate transactions. For too long, commission structures have been somewhat of a mystery to many clients, leading to confusion and potential dissatisfaction. With these changes, clients can make more informed decisions and feel confident that they are getting the best value for their money.

Choosing the Right Agent

In light of these changes, it is more important than ever to choose an agent who is not only knowledgeable about the latest market trends but also up-to-date with the latest real estate laws. As a Realtor with JohnHart Real Estate, I pride myself on staying informed about every aspect of the industry to provide my clients with the best possible service.

Whether you are buying or selling, I am here to guide you through the process, ensuring that you fully understand every step of the transaction and that your interests are always protected. My goal is to make the real estate experience as smooth, transparent, and rewarding as possible.

If you have any questions about the new agent compensation law or if you are ready to take the next step in your real estate journey, don’t hesitate to reach out. I’m here to help you navigate this new landscape with confidence.

All the best,

Nathan Derry

📍JohnHart Real Estate

📞(424) 303-0440

📧 nathan@jhagents.com

👨🏽‍💻 itsnathanderry.com

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