Changes are coming to real estate deals; local realtors weigh in

Greater transparency is coming to real estate deals across the country, starting Saturday, Aug. 17.

Michigan realtors say the changes won’t reinvent the home-buying process, but they could change how much your agent is compensated.

“For a homebuyer right now, what this really means is you’re going to be having more upfront conversations,” said John Broadbooks, CEO of the Western Michigan Lakeshore Association of Realtors. “Particularly at the beginning of the home buying process, where an agent is going to spend more time explaining what he or she is going to do, how they’re going to do it, how they’re going to represent you, and, importantly, how much the services are going to cost.”

Prospective buyers will need to sign an agreement on compensation terms before touring a house physically or virtually. Open houses will remain available without signing any documentation.

“This could be the biggest thing that you ever buy in your life, and you need to have as much information as you possibly can so you can make an informed decision,” Broadbooks said.

More information can be found with the National Association of Realtors .

Sellers will still be able to offer compensation to a buyer’s agent, but they will be limited in advertising their listing on a multiple listing service, or MLS. Buyers can also take sellers up on concession offers, such as paying their closing costs.

“What may have been a gray area before to a buyer and or seller as to how the buyer broker was being paid, I think it’s going to be very clear now,” said Julie Rietberg, CEO of the Greater Regional Alliance of Realtors.

Local realtors say they don’t anticipate the changes having a significant impact on home prices or availability.

“We’re in such a strong seller’s market that something of this nature is probably going to be less impactful, because there’s already a shortage of inventory,” Rietberg said. “And I think buyers will continue to be challenged — especially first time home buyers — will continue to be challenged in finding a home at a price they can afford.”

Agents say that prices have continued to trend up in recent years, and that these changes likely wouldn’t buck that trend.

“The reality is that the housing market has always been driven by supply and demand, and right now there’s just too little supply and there’s too much demand,” Broadbooks said.