LAS VEGAS (KTNV) — If you want to tour a home on the market in the Las Vegas valley, you'll now need to have a written contract in place with a real estate agent.
That's because of a new set of rules that go into effect this week surrounding the buying and selling process.
Home sellers have traditionally offered a blanket commission to a buyer’s agent when they list their home on the market. But that will no longer be allowed as various changes to U.S. real estate industry practices are set to take effect, according to the Associated Press.
A buyer may still try to negotiate such an offer from the seller. But if they decline, that would leave the buyer on the hook for paying for their agent’s services.
The National Association of Realtors is behind the policy changes, which stem from its $418 million settlement earlier this year of federal class-action lawsuits that claimed U.S. homeowners were forced to pay artificially inflated real estate agent commissions when they sold their home.
And, as we outlined above, potential buyers will now need to have a contract in place with an agent to even tour a home on the market.
"It's just kind of confusing for some people, especially because it requires a lot of explanation," says Kris Cesena, a Las Vegas resident who has had her house on the market for close to three months.
David Lee, a local realtor and owner of Painted Desert Realty, says the changes probably won't have a huge effect at the end of the day, but there will now be more steps in the homebuying process.
"It won't slow anything down; it really won't," he said. "There are new steps that have to be done, but an experienced realtor handling a situation, that won't be a big problem."
The new rules apply to brokers and agents representing clients looking to buy or sell a home advertised on a multiple listing services or MLS, which is affiliated with the National Association of Realtors.
They boil down to two significant changes:
- Blanket offers of compensation on behalf of sellers to buyers’ agents will no longer be included in listings posted on the MLS (though they can still be made through other mean).
- And homebuyers will be required to sign detailed representation agreements when they hire an agent.
If you still have questions, we asked Lee to sum up the changes. Here's how he explained it:
It remains to be seen whether the policy overhaul will lead to lower agent commissions or fewer sellers opting not to offer to cover the buyer’s agent fees.
Here in Las Vegas, the median price for an existing home is now close to $480,000 (near an all-time high).
