Navigating Change: How New Real Estate Rules Reshape the Homebuying Experience

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South Bend, Ind. — The real estate industry is undergoing its most significant transformation in decades, with two major rule changes poised to redefine the way homebuyers and sellers navigate the market. These shifts are designed to bring greater transparency and trust to the process, but they also introduce new challenges and opportunities for all parties involved.

One of the most notable changes is the removal of the traditional practice where local listings would indicate whether a seller is offering to pay a buyer's agent and how much. Previously, sellers and their agents would negotiate the compensation for the buyer's agent as part of the listing agreement. Moving forward, this will no longer be a given. Instead, sellers will have the option to decide whether to contribute to the buyer’s agent's commission or not at all. This shift means that buyers may need to shoulder the cost of their agent's services, adding a new layer of financial consideration to their homebuying journey.

Jon De Souza, President of Cressy and Everett Real Estate, highlights the impact of this change. "Going forward, we're going to examine that, and we're going to give people the choice, and the sellers may choose to pay less for the buyer's agent or pay nothing for the buyer's agent. And then the buyer then has to figure out how to pay for the services of their own agent," De Souza explains.

The second major change requires buyers and their agents to sign a written agreement before beginning their working relationship, including discussions on commissions, even before setting foot in a potential new home. This mandatory agreement is designed to protect buyers by clarifying responsibilities, costs, and the level of service they can expect from their agents.

"Before we can show them a house, we need to have had this written understanding between us. And it's really important because we want the buyers to be able to know what services they're going to get, know what their rights are, what the legal rights are, but also who pays for what, and what the value for those is," De Souza adds.

While these changes may seem daunting at first, De Souza is optimistic about their potential to improve the real estate process. He believes they will foster more informed decisions and stronger relationships between buyers, sellers, and agents. "We think that it would bring a lot more clarity into the process and will really show the value that Realtors on both sides of the transaction really bring. So it's going to really force us to talk about our role and talk about our value, and at the end, we'll have a much better experience. We're excited about that," he says.

As these new rules take effect, both buyers and sellers will need to adapt to this evolving landscape. The hope is that with these changes, the real estate process will become more transparent, empowering all parties to make well-informed, confident decisions.