New rules will affect the homebuying process

By Sharon Estep

Recent changes in state law and MLS (Multiple Listing Service) rules are designed to provide greater transparency to consumers about the services REALTORS offer, how they are compensated, and the legal responsibilities of agents representing homebuyers. This means a written agreement will need to be signed prior to looking at a home, however it doesn't need to be a long-term commitment; it could be specific to viewing a property a single time. The law was passed by the Indiana General Assembly and took effect July 1.

When you hire a REALTOR, it means you are partnering with a professional who adheres to a strict Code of Ethics, possesses expertise in the field and thus can guide and assist you in evaluating property, securing financing, writing offers and negotiating many details on your behalf.

The NAR (National Association of REALTORS) settlement resolves several national lawsuits regarding real estate commissions. Commissions have always been negotiable, and this remains unchanged. The settlement includes changes to increase transparency about the services REALTORS provide and how they are compensated.

Under the settlement, offers of compensation from one broker to another cannot be part of the MLS. However, buyers and sellers still have the flexibility to negotiate commissions and fees that suit their transaction. This settlement protects the option for listing brokers, with seller approval, or sellers themselves to pay buyer broker compensations, thereby saving homebuyers that cost. The process simply moves off the MLS.

Everything in real estate is negotiable and there are various options for receiving assistance and compensating your agent. Whether it's the down payment, closings costs, or agent fees, all terms are open to negotiation.

It is important to note that buyers may still visit open houses without an agent. However, if you reach out for a private showing, be prepared to sign an agreement beforehand. Maggie McShane, Senior Vice President of Government Affairs for the IAR (INDIANA ASSOCIATION OF REALTORS), advises homebuyers to hire professional representation to navigate the complex and challenging housing market.

For more information, reach out to a trusted REALTOR who can help you understand how the new law and settlement affect you as a consumer.