New Real Estate Agency Law: A Game Changer for Buyers and Sellers
The real estate industry is about to experience a significant shift as the New Real Estate Agency Law comes into effect. This introduces several changes that will impact both buyers and sellers. Here’s what you need to know:
1. Buyer’s Agency Agreements are Becoming Law
In the past, buyers often worked casually with multiple agents. However, under the new law starting on August 17, 2024, a signed agency agreement will be required for every showing. This change encourages single-agent relationships, leading to better service, stronger trust, and overall smoother transactions.
2. Buyer Agent Commissions are Always Negotiable
Under the new law, the compensation for the buyer’s agent can be paid directly by the buyer, OR by the seller through ‘buyer concessions’. Importantly, the amount of compensation will no longer be displayed on apps or listing platforms. This change brings more control to buyers and buyer agents, along with additional flexibility to the negotiation process.
3. Clear Picture of Compensation from the Beginning
All parties involved will decide what commission will be paid before any homes are toured. Depending on the property selected, the seller may or may not offer a concession toward this amount. This ensures that buyers and agents have a clear understanding of the financial aspects from the outset.
4. List Your Home at a Price that Includes Buyer Concessions
We are advising Orange County home sellers to list their homes at a price that includes buyer concessions. This means factoring in necessary repairs and compensation upfront, so it’s factored into your listing price. This strategy gives cash-crunched buyers additional options, which will likely net sellers more offers.
The New Real Estate Agency Law is set to bring about more transparency, personal accountability, fairness, and clarity in the real estate market. As we navigate these changes, it’s crucial for buyers and sellers to work closely with their agents to understand the implications and make the most of the new rules.
Please be reminded that listing agents in CA have accountability to the sellers first, so if buyers want the purest form of representation, it’s absolutely critical to work with a buyers agent.
Don’t let the upcoming changes catch you off guard! Stay ahead of the game by familiarizing yourself with the New Real Estate Agency Law. Whether you’re buying or selling, now is the time to partner with a knowledgeable agent who can guide you through these changes and help you navigate the evolving landscape of real estate transactions. Reach out to Angie today at 949-338-7408 or fill out the form below and let’s start strategizing for success in the new era of real estate!
Orange County Real Estate Success 
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