Changes to the homebuying process now in effect

The Pennsylvania Association of Realtors recently issued a reminder to potential Pennsylvania homebuyers regarding changes in the homebuying process that are now in effect. According to the Association, the changes are meant to make buyer agent services and fees clearer for consumers.

Two changes went into effect Aug. 17:

• Property listings in databases known as Multiple Listing Services (MLS) will no longer include an offer of compensation to buyer agents. Instead, homebuyers and buyer agents will discuss fees directly.

• Before touring a home with a buyer agent, either in-person or virtually, consumers must enter into a written agreement with that agent outlining the agent’s services and fees.

“Consumers will have direct conversations with prospective buyer agents to understand their services and fee structure upfront,” said Bill Lublin, president-elect of the Pennsylvania Association of Realtors. “These personalized consultations between buyers and agents will empower consumers to select a real estate professional based on their expertise, experience and value.”

According to the announcement, all written agreements between homebuyers and buyer agents must outline the services the agent will provide and the corresponding fees. The Pennsylvania Association of Realtors noted that the amount of compensation stated in the agreement cannot be open-ended. In other words, it cannot be “whatever compensation the seller is offering to the buyer.” It must be defined.

“We acknowledge this is new ground for homebuyers and their agents alike,” Lublin said. “The Pennsylvania Association of Realtors and our local associations across the state have been educating members about these changes for many months. Pennsylvania realtors have been helping consumers navigate the homebuying process for more than 100 years. As trusted professional advisors, we are here to provide guidance and expertise that enables more people to achieve homeownership.”

Consumers considering buying a home can learn more at parealtors.org/whats-new.