Understanding the New Real Estate Rules

Kayenta Real Estate

September 2024

Many of you are likely aware that, in response to a recent highly-publicized legal settlement, the National Association of Realtors (NAR) has agreed to make changes to the ways in which homes and properties across the country are listed, bought, and sold. These changes were fully implemented, both locally and nationally, on August 17, 2024. Over the past several months, your neighborhood realtors at Kayenta Homes & Properties (Jeff, Steve, and Naomi) have been staying abreast of and constantly learning about these changes, participating in various online training courses, and familiarizing ourselves with the provisions of new and modified real estate forms released at the national, state and local levels.

As residents of Kayenta perhaps thinking of selling your home or lot, what are the key points for you to know about these changes impacting the real estate industry? We’ve summarized the key points below:

  • You still have the option of offering compensation to buyer brokers.
  • Your agent must disclose to you in writing and obtain your approval for any offer of payment he/she will make to another broker acting for buyers
  • This disclosure must specify the amount or rate of such payment
  • Offers of compensation cannot be listed on the Washington County Multiple Listing Service (or MLS, which is a local marketplace used by both buyer brokers and listing brokers to share information about properties for sale)
  • Your offers of compensation can, however, be advertised and listed via off-MLS platforms, such as the highly-visited www.kayentahomes.com Website, social media flyers, marketing materials, storefronts, etc
  • You as a seller can still offer buyer concessions on the Washington County MLS (e.g., buyer closing cost concessions)

In next month’s Kayenta Connection, we will share with you what impact these new rules will have on buyers going forward.

October 2024

In last month’s Kayenta Connection, we shared with you how recent changes required to be made by the National Association of Realtors (NAR) will impact Kayenta residents seeking to list their homes (or properties) for sale effective August 17, 2024 going forward. This month, Kayenta Homes & Properties (Jeff, Steve, and Naomi) would like to share with you how these new rules will impact home buyers. Buying a home is one of the largest financial transactions most people will ever undertake.

Here’s a summary of how the recent settlement and resulting changes to the rules will impact homebuyers:

  • Homebuyers will be required to sign a written agreement with their agent before touring a home, so it will be critically important for buyers to ensure that it reflects the terms they’ve negotiated with their agent and understand exactly what services and value will be provided, and for how much
  • This buyer agreement must include four (4) components around broker compensation:
  • A specific disclosure of the amount or rate of compensation the buyer’s agent will receive or how this amount will be determined
  • Compensation that is objective and not open-ended (i.e., X percent; X hourly rate; flat fee)
  • A term that prohibits the agent from receiving compensation that exceeds the amount or rate agreed to in the agreement with the buyer, and
  • A conspicuous statement that broker fees and commissions are fully negotiable and not set by law
  • Written agreements will apply to both in-person as well as virtual home tours
  • Buyers won’t need a written agreement if they’re only speaking to an agent at an open house or asking about services
  • The seller may agree to offer compensation to the buyer’s agent. This practice is permitted but the amount cannot be disclosed on the Washington County MLS (the local marketplace used by both buyer brokers and listing brokers to share information about properties for sale.
  • Buyers can still accept concessions offered by the seller, such as offers to pay their closing costs

Kayenta Homes & Properties is here to help you navigate the process of selling your home and, of course, we’re ethically obligated to work in your best interest. Understanding how the NAR’s new rules affect potential buyers of your home is critical to the home marketing and selling process. Compensation for our services remains fully negotiable and we’re committed to clear and transparent discussions with you about our compensation. The important thing to remember is that you have a full range of choices when selling your home, and we’ll partner with you to make the best possible decision for your needs. Whether you’re ready to list your home for sale or just looking for more understanding regarding these recent changes to the real estate industry, please feel free to reach out to us at 435-628-7234 or contact us at jeff.kayenta@gmail.com.