A new change in real estate gives buyers more control when buying a home.
There’s a new practice in the real estate industry related to buying a home. Moving forward, buyers need to have a clear understanding of the costs involved in homeownership before looking at properties.
Years ago, buyers typically signed a Buyer Representation Agreement with their agent after looking at a few homes. But now, starting in August 2024, buyers must have a signed agreement before viewing any properties. This change is a good starting point for discussing and further understanding the new process and establishing expectations for buyers when buying a home.
“Many sellers still offer compensation to buyers agents to attract more showings and potential buyers.”
In Minnesota, sellers have traditionally compensated a buyer’s agent. They can still offer commissions, although they cannot be disclosed on the MLS. Sellers who wish to offer compensation must find other ways to communicate with buyer’s agents. If a seller is not offering compensation, buyers may have to pay it. This means that buyers are in control of whether they want to continue to look at homes where sellers are not offering buyer’s agent compensation.
This change brings transparency to every transaction, allowing buyers to understand who pays the broker commission. We recommend talking about this with sellers for every property you consider. Nevertheless, many sellers still offer compensation to buyer’s agents to attract more showings and potential buyers.
If you have any questions about the recent changes in the real estate market or want to discuss your real estate plans, call us at (952) 212-3597. We are more than happy to assist you.
