2024 Real Estate: What Buyers Need to Know Before July

2024 Real Estate: What Buyers Need to Know Before July

Significant changes are coming

Are you planning to buy a property in the next few months?

Infographic - Buyer's Agent changes coming in July 2024

As you may have heard, the real estate industry is undergoing a shift in how commissions get paid in real estate transactions. This is expected to start in July 2024. Here's what we know, pending court approval:

NAR has agreed to enact a new rule that would require MLS participants working with buyers to enter into written agreements with their buyers. NAR continues, as it has done for years, to encourage its members to use buyer brokerage agreements that help consumers understand exactly what services and value will be provided, and for how much. These changes will go into effect in mid-July 2024.

What this means for YOU as a buyer

Be aware! You may be liable for paying a 2-3% commission.
*Martha’s Vineyard buyers pay a 2% Land Bank fee on all transactions, except first time home buyers, which have a portion of the fee exempt if you own your home for 5 years.

With the upcoming changes, entering into a real estate transaction necessitates an agreement with your buyer's agent, and you may be liable for paying a real estate commission of 2-3% of the total sale.

The buyer's agency agreement will specify that the buyer's agent's compensation is to be negotiated at the time an offer is made.

Buyers will need to sign a buyer's agency agreement which indicates that compensation for the buyer's agent will be requested at the time the offer is made. However, if the seller refuses to compensate the buyer's agent, then you, as the buyer, might be liable for the agreed commission rate.

How to prepare

Anchor Realty of Martha's Vineyard suggests that all potential and future buyers ACT NOW!

Listings that are on the market right now already have a buyer's agency commission built into the listing agreement. If you enter into a real estate agreement before the changes, go into effect you will be covered. After that you may be liable for the cost of having a buyer’s agent represent you.

The importance of having a buyer's agent

Anchor Realty of Martha's Vineyard feels the role of a buyer's agent is extremely important, and we worry that Buyers will end up not being represented in the real estate transaction process. If you are buying a home through a Real Estate listing agent, then that Agent is working for the SELLER ONLY. Not you the Buyer.

A home is the largest purchase a person will make in their lifetime. Don’t make such an important decision without the aid of a professional real estate agent who will help you walk through all the steps of purchasing a home.

Anchor Realty is here to answer questions

We're here to answer any questions you may have:

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