There have been various information and opinions in the news lately about changes coming to the real estate industry and what they mean for homebuyers and sellers.
As a Santa Clara County Realtor and current President of the Santa Clara County Association of Realtors with over 30 years of experience, I want to take the opportunity to clarify how these changes will impact buyers and sellers who are in the market or thinking about making a sale or purchase of a home.
A recent settlement by the National Association of Realtors will bring two major changes for Realtors:
First, real estate compensation offers can no longer be shown on a multiple listing service (MLS). Second, homebuyers who want to work with an agent will need to sign a written agreement with that agent before touring a home, which conspicuously states the amount of compensation.
With regard to the second change, the good news is that the California Association of Realtors (C.A.R.) has long supported transparency in a buyer’s relationship with their agent and introduced its first buyer representation agreement in 1999.
While this practice change may be new, our commitment to transparency that benefits consumers is longstanding in California and clearly demonstrates the value agents bring to transactions.
I see this as a positive development for both consumers and agents because it facilitates conversations to help homebuyers better understand the process and learn the right questions to ask agents, including what they’re going to do for their clients.
It will afford agents the opportunity to explain their services, set expectations and more clearly define how the home buying or selling process will proceed. It may also bring out into the open all the extra steps agents take that often go unnoticed to ensure a smooth transaction.
There’s a reason most homebuyers historically have opted to work with a real estate agent. That’s because they recognize the value Realtors bring to the process: we help buyers and sellers navigate a maze of forms and complex paperwork. We connect clients with reputable mortgage lenders, home inspectors, appraisers and other professionals in our networks.
And through it all, we ensure that our clients’ interests are represented in pricing, negotiation and closing.
Realtors also help sellers achieve higher sale prices for their homes. According to a 2022 C.A.R. seller survey, nearly 46% of California homes sold with the assistance of an agent were sold above asking price, compared to only 24% of homes sold by sellers without an agent. In addition, sellers who used an agent typically received nearly twice as many offers on their homes compared to those who sold their homes on their own.
I believe these changes will help consumers better understand what REALTORS® do every day. We fight for their best interest in achieving and enjoying the goal of home and property ownership. That always has been, and remains, our commitment.
Sincerely,
Michelle Perry
President, Santa Clara County Association of REALTORS
