Transforming Real Estate: New Compensation Rules and Our Commitment at Etheridge Construction
Effective August 17, 2024, the real estate industry will see significant changes to the rules governing real estate commissions. At Etheridge Construction, we remain dedicated to transparency and ensuring our customers reap the benefits of these updates.
Understanding the Law Change
Traditionally, sellers have covered the buyer’s agent compensation, typically between 2.5% and 3% of the home’s purchase price. However, the new regulations introduce several key changes:
- Written Agreements Required: Buyers must sign a written agreement with their agent prior to viewing homes, detailing compensation terms.
- Advertising Restrictions: Agents are prohibited from advertising compensation offers on Multiple Listing Services (MLS).
- Seller Discretion: While sellers can still opt to pay the buyer’s agent, they are no longer mandated to do so. Consequently, if the seller or listing agent does not cover this compensation, the buyer will be responsible for it.
- Negotiation with Agents: Buyers may need to negotiate compensation directly with their agents.
Our Commitment at Etheridge Construction
At Etheridge Construction, we proudly maintain our practice of paying the buyer’s agent compensation at 3%. This commitment ensures:
- No Additional Costs for Buyers: We cover the compensation, alleviating potential extra expenses for our customers. We want to make the path to homeownership more accessible and affordable for homebuyers.
- Fair Compensation for Realtors: Our partnering agents receive adequate compensation for their valuable services. We want to encourage referrals and strong agent partnerships with Etheridge Construction.
At Etheridge Construction, customer satisfaction is our top priority. We are committed to adapting to evolving industry practices to better serve our customers and partners.