If you're in the market for a new home, there
are some changes to be aware of.
News 4 Sarah Mankowitz sat down with the president of
the Buffalo Niagara Association of Realtors to find out what
they mean for buyers and sellers.
As part of a $418 million settlement, new rules for
the residential real estate market went into effect Saturday.
One of the most notable changes that are now in
effect.
Buyers will have to sign a written agreement with their
real estate agent before they can get a tour of
a house that's up for sale.
This is going to be brand new for buyers to
interview Realtors, discover what is their value, discover how much
the the fee is going to be at the time
of closing before they go shopping.
So it's it's actually going to be a little uncomfortable
at first for both buyers and Realtors because we haven't
been used to doing that.
But I think we're going to get through this pretty
quickly.
Vienna Larundi with the Buffalo Niagara Association of Realtors believes
the changes will benefit both the buyer and the agent.
There's no loose ends.
There's no question in the back of their mind of
what else will I be responsible for at the time
of closing.
So eventually, once we get accustomed to this new standard
of practice, it's going to be easier for people.
Another change before Saturday.
A seller would be responsible for paying both the listing
agent and the buyer's agent.
Now the seller gets to decide how much they want
to pay a buyers broker.
Lurendi says it will require more communication between all parties.
The buyer now has to understand in writing that the
agent that they choose to work with is going to
be compensated on the day of closing, how much they're
going to be compensated and how they're going to be
compensated, whether the buyer is going to be responsible for
paying them or if the seller is going to agree
to compensate them at closing.
Lurendi says these changes will build transparency and trust between
agents and their clients.
There's no more secrets.
There's no more misunderstandings.
There is Full disclosure and full communication as to how
real estate works mechanically and empowering the consumer and representing
the consumer is really what our ultimate job is, protecting
them.
Sarah Mikowitz, News 4.