September is here, and with it, some important changes in how real estate is bought and sold in San Diego. Earlier in the summer, I shared a quick guide on what both home sellers and buyers needed to know about the National Association of Realtors (NAR) settlement. Now that the changes are in effect and the new forms are in circulation, I can provide a much clearer analysis of how the NAR settlement is changing the San Diego Housing Market.
How the NAR Settlement is Affecting San Diego Home Sellers
If you’ve sold a home in California in the last decade, you know what the standard Residential Listing Agreement (RLA) looks like. The new version of this form introduced post-NAR settlement represents one of the most substantial changes to the California RLA in years. Chief among the changes is how the commission is handled for the buyer’s agent. Previously, when you signed the listing agreement, you decided what you wanted to offer both sides right at signing. Now, only the commission you want to pay the listing agent is decided when the RLA is signed, leaving the commission negotiation for the buyer’s agent for the offer table. Expect to see the inclusion of a new form regarding that commission payment when a buyer makes an offer on your home.
How the NAR Settlement is Affecting San Diego Home Buyers
Sellers have always had a choice about offering to pay a commission to the buyer’s agent or not. Post-NAR settlement, new rules and forms make this choice crystal clear. As a prospective San Diego home buyer, you must now sign a Buyer Broker Agreement (BBA) before touring any properties. This document confirms in writing that you are working with a real estate agent. This form also outlines your responsibilities to your agent should the seller decline to pay the buyer’s agent a commission. As always, these terms are open for negotiation between you and your agent. Be sure to ask questions and get the clarity you need before signing the BBA, a binding agreement similar to the RLA.
While much has been made about the NAR settlement over the past few months, the bottom line is that not a whole lot has truly changed in the San Diego housing market. Home sellers and buyers should expect to see new and updated documents and different procedures attached to the home sale and purchase process. However, your agent is still your best advocate and resource—who you choose to work with matters more than ever! Any real estate purchase or sale, whether it’s your first condo or a multi-million dollar investment, constitutes one of the most significant and complex transactions you will ever experience. Working with someone who knows how to navigate the process is critical. As an award-winning San Diego real estate agent ranked in the Top 0.1% of agents in the country, I would be honored to work with you. Please get in touch to discuss your plans for this fall and beyond!