Kauai Real Estate Update- For a complete update on what Sold, went Under Contract and was Just Listed on the island of Kauai last week click here; Kauai Real Estate Update August 12 to 18, 2024
Poipu Beach Real Estate Update- Last week two Prince Kuhio units went under contract, they were priced at $645,900 and $725,007 (respectively) both had only been on the market for a very short time. For a complete list of all the fee simple real estate activity in Poipu since the beginning of this year click here; Poipu Beach Fee Simple Current Market Analysis
For the Kiahuna Plantation click here; Kiahuna Plantation Current Market Analysis
A New Era in Real Estate: What You Need to Know About Recent Changes
As of Saturday, August 17th, how real estate is done across the nation changed. Whether you're a current property owner or someone looking to buy, and no matter what state you live in, these changes will impact you.
What Happened?
Earlier this year, the National Association of Realtors (NAR) reached a significant agreement with the Department of Justice (DOJ). This agreement has set the wheels in motion for new policies that every Realtor across the United States must now follow. If you're interested in the details, you can dive deeper here; National Association of Realtors Settlement Summary
What’s Changed?
In a nutshell, here’s what you need to know:
For Buyers: Before you can step foot on a property with your Realtor—whether in person or via video—you'll need to sign a Buyer Representation Agreement. This document will outline the compensation you'll be responsible for paying your agent.
For Sellers: The days of openly displaying the buyer agent’s commission on the MLS are gone. If you decide to offer a commission to the buyer’s agent, that figure won’t be listed publicly.
This marks a significant shift in how real estate transactions will be conducted. While these changes have been on our radar for some time, the real test will be how the public adapts. The NAR, DOJ, MLS companies, and Realtors across the nation have been collaborating since the start of the year to iron out the details. It's worth noting that while policies have changed across the United States; everything is still pending final approval from the DOJ in November.
Here is a list of changes from the National Association of Realtors website;
For Sellers
- You still have the choice of offering compensation to buyer brokers. You may consider doing this as a way of marketing your home or making your listing more attractive to buyers.
- Your agent must conspicuously disclose to you and obtain your approval for any payment or offer of payment that a listing broker will make to another broker acting for buyers.
- This disclosure must be made to you in writing in advance of any payment or agreement to pay another broker acting for buyers, and must specify the amount or rate of such payment.
- If you choose to approve an offer of compensation, there are changes to how this can happen.
- You as the seller can still make an offer compensation, but your agent cannot include it on a Multiple Listing Service (MLS)—MLSs are local marketplaces used by both buyer brokers and listing brokers to share information about properties for sale.
- Your agent can advertise your listing via off-MLS platforms such as social media, flyers and websites.
- You as the seller can still offer buyer concessions on an MLS (for example, concessions for buyer closing costs).
For Buyers
- You will sign a written agreement with your agent before touring a home.
- Before signing this agreement, you should ensure it reflects the terms you have negotiated with your agent and that you understand exactly what services and value will be provided, and for how much.
- The buyer agreement must include four components concerning compensation:
- A specific and conspicuous disclosure of the amount or rate of compensation the real estate agent will receive or how this amount will be determined.
2. Compensation that is objective (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended (e.g., cannot be “buyer broker compensation shall be whatever the amount the seller is offering to the buyer”).
3. A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and,
4. A conspicuous statement that broker fees and commissions are fully negotiable and not set by law.
- Written agreements apply to both in-person and live virtual home tours.
- You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services.
- The seller may agree to offer compensation to your agent. This practice is permitted but the offer cannot be shared on a Multiple Listing Service (MLS)— MLSs are local marketplaces used by both buyer brokers and listing brokers to share information about properties for sale.
- You can still accept concessions from the seller, such as offers to pay your closing costs.
To see this information in more detail on the National Association of Realtors site click here;
What This Means For Sellers
What This Means For Buyers
