Big Change Coming to the Real Estate Market Empowering Buyers

Americans followed a certain system when buying or selling a home for a long time. Usually, agents help buyers take their commission from what the seller agent gets. But with an upcoming change in the homebuying process, that won’t be the case anymore.

Let’s take a peek at this monumental update and how it would affect the market moving forward.

New Ruling for Buyers and How It Works

Scheduled for implementation on August 17, 2024, real estate agents representing buyers will require clients to sign a Buyer Broker Agreement. The agreement will set the agent’s duties, responsibilities, and compensation for their service.

Additionally, agents aren’t allowed to perform any task for the buyer, like touring properties, without the signed agreement.

Benefits for Buyers

This change means buyers can now negotiate their agent’s commission, unlike before where it’s automatically taken from the property’s final sale price. The compensation is also broken down in detail, showing what service they’re getting and how much it will cost. No more open-ended or seller-dictated commission – everything is fixed before the first move.

Speaking of service, they can choose which service to get from the agent. They can avail of some or all services the buyer agent offers, potentially saving the buyer on additional costs.

Less Conflict, More Customer-Friendly

These changes aim to reduce the conflict of interest in the real estate market while driving down home prices.

In the old setup, buyer and seller agents share a portion of the final selling price, usually around 5%-6% of the total amount. Many perceive that due to the structure, agents push for homes that offer higher commissions, influencing the high rates we’re experiencing. This resulted in a class-action lawsuit that led to NAR settling the case and bringing forward the upcoming changes.

Another anticipated benefit from the new ruling is a more affordable housing market. With agent commissions no longer included in the property cost, sellers can list the home based on its actual appraisal value.

Giving More Value to Home Buyers

Home buying has become more flexible and accessible, thanks to the upcoming changes in the home buying market. You’re now more in control than ever, from choosing the service you need to how much commission to pay.

Add ijaraCDC’s Sharia-compliant home acquisition options to the mix, and you’re better equipped to buy the right home for you and your family. Talk to our experts during your homebuying journey to see which programs can fit your needs.