Real estate
BY BRITTANY ANDERSON
The Austin Board of Realtors is set to implement policy changes to its Multiple Listing Service—an online portal where Realtors share information about homes for sale in the market—on Aug. 13. The changes come following a $418 million National Association of Realtors settlement that could transform the way homes are bought and sold, and even end up leading to lower home prices, local Realtors have said. Austin-area Realtor April Womack said the settlement will bring new rules to how buyer agent and seller agent commissions work. Commissions are usually split between buyer and seller agents and paid for by the seller. Averaging 6%, some homeowners are unaware of this fee as it’s baked into the home cost, Womack said. NAR said this percentage has always been negotiable, but the new rules require its disclosure. Home buying, selling rules shift
Breaking it down
Womack and Austin-based Realtor Emily Ross said the changes will be hardest on the buyer side, specifically first-time homebuyers. While sale prices likely won’t be affected much in the beginning, Ross expects that by the end of next summer Realtors will have a better grasp on the settlement’s long-term effects. In time, sales prices could come down if sellers don’t pay the buyer agent commission and it falls on the buyer instead, Ross said. “Adding 3% to a buyer, in a lot of cases, is going to be a big deal for them, and there’s no way they’re going to be able to afford the home if the sales price doesn’t go down by 3% too,” Ross said.
2024 settlement timeline The settlement agreement from the NAR requires the MLS practice changes to be implemented by this fall. March 15 Settlement agreement signed April 24 Preliminary approval of settlement review granted by court Aug. 17 Practice changes take effect,
earliest day for class action lawsuit notifications to be issued to those impacted
Nov. 26
Final approval hearing for settlement
SOURCE: NATIONAL ASSOCIATION OF REALTORS/COMMUNITY IMPACT
Major takeaways
Chenevert added there will be nuance in the way each market with an MLS uses NAR’s policy changes, so buyers and sellers could have a different experience should they choose to buy or sell outside of ABoR’s MLS.
When negotiating commissions, Womack recommended buyers go for an agent who: • Has experience and knowledge of the area • Can “think out of the box” for packaging commission and other buyer fees Buyers and sellers should also keep a few things in mind once the changes take effect, ABoR CEO Emily Chenevert said. Agents are likely to have their sellers sign an additional amendment that has the new required disclosures if they do not sell their home before Aug. 13, and buyers should expect that agents won’t show them a property without a written agreement in place.
Major upcoming changes to the MLS
Compensation disclosures to sellers, and prospective sellers and buyers, are now required. Seller agents can no longer make compensation offers to buyer agents on the MLS. ABoR will show financial contributions made toward the buyer’s expenses in a “seller contributions” field. A written agreement outlining agent pay and services between a buyer and agent is now required before home tours.
“The seller contributions field that we’re adding ... [allows] for that kind of marketing incentive box that doesn’t exist in every MLS.”
EMILY CHENEVERT, AUSTIN BOARD OF REALTORS CEO
SOURCES: AUSTIN BOARD OF REALTORS, NATIONAL ASSOCIATION OF REALTORS/ COMMUNITY IMPACT
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