Big Changes Have Arrived for Real Estate: What It Means for Central Oregon Buyers and Sellers
If you’re a buyer or seller in Central Oregon, you may have heard that the real estate industry is undergoing some major changes. The National Association of Realtors (NAR) recently reached a proposed settlement agreement in the Sitzer/Burnett case, which aims to bring more transparency to broker commissions and MLS (Multiple Listing Service) practices. These changes will significantly impact the way real estate transactions are handled, especially for buyers who are new to the process.
Let’s break down what’s happening and how it might affect you.
1. Changes to Commission Structures: Buyers Will Play a Bigger Role
One of the most significant changes from the settlement involves how real estate commissions are structured. Traditionally, the seller was (somewhat) expected to cover both the listing agent’s and the buyer’s agent’s commissions, as many inexperienced selling agents operated under the impression that the commissions they requested were to be split and shared with the buying agent. These costs were typically factored into the sale price of the home, often leaving buyers unaware of how their agent was compensated.
What’s Changing? Going forward, buyers will have a much bigger say in how their agent is compensated. Instead of the seller automatically covering the buyer’s agent fee, it will now be negotiated directly between the buyer and their agent up front.
"Listing brokers will no longer be required to offer compensation to cooperating brokers through the MLS. This change allows for more flexibility and direct negotiation between the buyer and their agent."
What This Means for You: In Central Oregon, this change could bring both challenges and opportunities. Sellers might have the chance to keep more of their proceeds by not paying the buyer’s agent commission. However, buyers may need to budget for this expense, which could alter their financial planning during the home-buying process and lower buying demand – as it would take longer for buyers to budget for this potential expense. If you’re planning to buy a home, it’s important to be prepared to discuss compensation with your agent upfront.
"These agreements are intended to provide clarity and transparency, helping clients understand the services they are receiving and how their agent is compensated."
Timeline for Changes: What changed in 2024?
The proposed settlement changes went into effect in the summer of 2024. It’s important for both buyers and sellers to start reflecting on these shifts now. The specifics may continue to evolve as the settlement is finalized, but it’s clear that transparency and direct negotiation will play a larger role in the process moving forward.
For more information, you can read the full NAR statement here: NAR Reaches Agreement to Resolve Nationwide Claims and the NAR Settlement FAQ: Oregon Realtors NAR Settlement FAQ.
How We’re Helping You Navigate These Changes
We understand that these changes may seem confusing or even overwhelming, especially if you’re unfamiliar with the details of real estate transactions. Here’s how Team Homeward Found is preparing to support you:
- Proactive Communication: We’re staying up-to-date on these developments and will continue to provide updates as more information becomes available.
- Transparency in Agreements: We’ve always used Buyer Agency Agreements, and we’re ready to walk you through any updates, so you know exactly what to expect.
- Strategic Guidance: Whether you’re buying or selling, we’ll help you navigate the new landscape and ensure that you’re well-prepared for the changes ahead.
Have Questions? We’re Here to Help
We know these changes can raise a lot of questions. That’s why we’re here to provide clear answers and guidance every step of the way. If you’re curious about how these changes might impact your specific situation, don’t hesitate to reach out. Whether you’re planning to buy, sell, or just want to learn more about what’s happening, our team is ready to help.
Stay Informed with Team Homeward Found
As these changes take effect, we’ll continue to keep you informed and provide the latest updates on how they impact the Central Oregon real estate market. Thank you for trusting us to be part of your real estate journey — we’re here to ensure a smooth and successful experience for you, no matter what changes come our way.
Author: Chance Jackson, Realtor
Chance Jackson, a top 20 Portland Realtor on Social Media by PropertySpark, leads Team Homeward Found with a commitment to helping clients navigate the Central Oregon real estate market.
