There is a new rule for homebuyers
BECKLEY, WV (WVNS) — A new court ruling opens up the conversation of commission for real estate agents a bit earlier.
What does this mean if you’re looking in the housing market? Because of a recent court settlement, the National Association of Realtors has issued a new rule.
This rule requires homebuyers to sign an agreement with the realtor who shows a home to them. The buyer’s agent agrees to pay a commission-based fee to their realtor. The new rule was in response to a court settlement recently.
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Beckley broker, Kevin Rasmussen of Tim Berry Real Estate Company says the new rule just makes the homebuying process clear for sellers and buyers.
“Just opening it up to make it more transparent on how both sides of the deal get paid in their commission,” said Rasmussen.
Before the court settlement, sellers agreed to pay commission directly to the realtor listing their property.
The realtor then went to their local National Board of Realtors’ Multiple Listing Service and asked other agents to bring buyers to see the property.
They would also let the buyer’s agent know they would be willing to split the commission.
Before a realtor shows a property to a buyer, the buyer will sign an agreement to work with an agent for a period of time.
Altruist Realty Broker, David Chinn says the good news is that finance companies include the buyer’s fee in the mortgage.
“The finance companies know that this buyer’s fee is out there. Now they just put it in your payment. The only downfall is, we need the house to appraise for that fee, as well. It’s got to appraise enough to cover it,” said Chinn.
Local realtors say the new process could slow down property sales.
Transcend Realty Broker, Brian Brown says sellers can still take a clear, easy step to make sure their home sells quickly.
“One of the things we’re still encouraging sellers to do is to compensate a buyer’s broker. Due to the NAR ruling, that is now kind of left up to interpretation. We would like to keep things clear cut and simple,” said Brown.
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