LAKE CHARLES, La. (KPLC) – Changes are being made to how real estate agents conduct their business. On August 17th, new rules will go into effect which aim to protect buyers from hidden fees.
At Century 21 Bono Realty in Lake Charles, realtors have been taking classes and webinars to prepare them for the new rules.
“Just to learn as much as we can before the change, and just learn how we can talk about it to inform our buyers better,” Ashley Hewitt, realtor for Century 21 Bono, said.
Traditionally, commission is shown on listing sites, allowing licensed brokers and realtors to see how much they would make on a specific home sale. After a $418 million settlement announced back in March by the National Association of Realtors, real estate agents will now have to discuss their compensation upfront with clients.
The main change will come in the form of a buyer-broker agreement that will now have to be signed before ever touring a home.
“It’s really just transparency, meetings up front, sitting down with the buyer educating them before even showing homes,” Hewitt said. “If we have clients from a different state, and we have to do a Facetime, we have to have that signed before even doing a virtual tour.”
The agreement varies by agency but will usually have components such as how long the two-parties will be working together and compensation.
“It really shouldn’t change all that much, because all the changes we are going to make with the buyer will happen before they enter into a contract,” Hewitt said.
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