NAR is making the practice changes official on August 17, 2024. These changes are a result of a settlement agreement that mandates revisions to the MLS policy. As a homebuyer, understanding these changes is crucial. Here’s a breakdown of the key changes and how they impact your home buying journey.

The NAR settlement impacts home buyers by increasing transparency and changing commission structures, very likely requiring buyers to pay their agents directly. It also mandates clearer disclosures about commissions and conflicts of interest, leading to more informed decisions. Buyers should understand these changes to effectively navigate the evolving real estate market.

Following the NAR settlement, the traditional practice where sellers pay the commission for both agents is changing. Now, buyers might need to directly negotiate and pay their agent’s fees. Buyers should discuss commission structures with their agents early in the process to understand their financial responsibilities.

Whether to use a realtor when buying a home depends on your familiarity with the real estate process. Realtors offer expertise in market trends, pricing, and negotiations, and handle the complex paperwork and legal reviews, which is particularly helpful for first-time buyers. However, experienced buyers might save on commission fees by proceeding without a realtor or only buy the services they need. Assess your own real estate knowledge and the resources you have before deciding.

Begin the home buying process by evaluating your finances and securing a mortgage pre-approval to establish your budget. Next, pinpoint your ideal location and essential home features. With a realtor’s help, explore suitable properties, conduct viewings, and decide on a home. Make an offer, negotiate terms, and after acceptance, conduct a thorough home inspection. Finalize your financing, handle the necessary paperwork, and close the deal to complete the purchase.

To find the right realtor, start by identifying your specific needs and gathering recommendations. Review online feedback and interview several candidates to evaluate their market knowledge, communication skills, and experience. Confirm their licensure and successful track record. Choose a realtor who aligns with your requirements and with whom you feel comfortable working to ensure a successful real estate transaction.

When selecting a mortgage, compare interest rates and consider both fixed and adjustable-rate options based on your financial stability and housing plans. Evaluate loan terms, as shorter terms often have lower rates but higher monthly payments. Examine lender fees and understand the impact of your credit score on the rates you qualify for. Familiarize yourself with different loan types, such as conventional, government-insured, and jumbo loans, to choose one that fits your needs.