WAUSAU, Wis. (WSAW) – Buyers, sellers and real estate agents are being given new guidelines before final agreements are made. Now all options must be put on the table. The first step will affect how buyers view homes and how sellers or buyers pay agents.
This all happened because the National Association of Realtors was found guilty of forcing homeowners to pay excessive commissions to sell their homes. They now have to pay over $950 million and have also agreed to change their policies.
There are two important changes that sellers, buyers and brokers need to be aware of before making any final agreements.
“So a seller has offered compensation to others in the past and we were able to enter that into a Multiple Listing Service and as of Friday that will be removed from the Multiple Listing Service,” said Brian Slinkman, president-elect of the Central Wisconsin Board of Realtors. “Sellers can still offer compensation to sub-agents and buyer’s agents.”
Sellers or buyers can offer compensation. In most cases, it is the sellers who pay the compensation. The Central Wisconsin Board of Realtors says that despite these guidelines, they still expect sellers to pay compensation.
“If a seller doesn’t offer compensation, that means the buyer has to pay it and that’s not something lenders will fund. So it’s really in the seller’s best interest to work out an agreement with the offer to offset some of those costs,” said Central Wisconsin Board of Realtors President-elect Max Rea.
The second change is that a buyer must now sign a written form before touring a home with a broker, agent or agent. They have three options: a pre-brokerage agreement, a disclosure to clients and a buyer’s brokerage. If a buyer does not sign, they cannot tour the home.
“That would be something like a showing. That’s not a long-term agreement. Number two is disclosure to the clients. That’s where I would represent the seller. I could still broker a purchase with the buyer, but I would represent the seller, and the last option is what’s called buyer representation, where I would sign a contract with the buyer and represent the buyer,” Slinkman said.
They say this shouldn’t impact the real estate market as a whole. It just impacts the way business is done. Here’s what could happen if these new policies come into effect.
“I think buyers, like sellers have done in the past, will perhaps interview a few agents to find someone they feel more comfortable with and will be more likely to sign the contracts knowing the agent represents them,” Slinkman said.
Viewings are free. Buyers are not required to sign anything before entering a home. If a broker, agent or agent fails to provide the buyer with the written forms, they will be required to pay a hefty fee. The buyer is not liable.
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