LAS VEGAS (KTNV) — If you want to visit a home for sale in the Las Vegas Valley, you’ll now need to enter into a written contract with a real estate agent.
This is due to a new set of rules that came into effect this week regarding the buying and selling process.
These new rules could make it more difficult to buy a home in the Las Vegas Valley.
Home sellers have traditionally offered a blanket commission to the buyer’s agent when they list their home. But that will no longer be allowed as various changes to U.S. real estate industry practices take effect, according to the Associated Press.
The buyer can still try to negotiate such an offer from the seller. But if the seller refuses, the buyer will be responsible for paying for his agent’s services.
The National Association of Realtors is behind the policy changes, which stem from its $418 million settlement earlier this year of federal class-action lawsuits that alleged that U.S. homeowners were forced to pay artificially inflated commissions to real estate agents when they sold their homes.
As mentioned above, potential buyers will now have to enter into a contract with an agent in order to be able to tour a home on the market.
“It’s a little confusing for some people, especially because it requires a lot of explanation,” says Chris Cesena, a Las Vegas resident who has had her home on the market for nearly three months.
The changes probably won’t have a huge impact in the end, but there will now be more steps in the home-buying process, says David Lee, a local real estate agent and owner of Painted Desert Realty.
“It’s not going to slow anything down; it’s not really going to slow anything down. There are new steps that need to be taken, but if an experienced real estate agent handles a situation, it’s not going to be a big deal,” he said.
The new rules apply to brokers and agents who represent clients looking to buy or sell a home advertised on the National Association of Realtors’ Multiple Listing Services, or MLS.
This can be summarized in two important changes:
- Comprehensive compensation offers made on behalf of sellers to buyers’ agents will no longer be included in listings posted on the MLS (although they may still be made through other means).
- Home buyers will be required to sign detailed representation agreements when they hire an agent.
If you have further questions, we asked Lee to summarize the changes. Here’s how he explains them:
Las Vegas real estate agent David Lee explains the new rules for buying and selling homes.
It remains to be seen whether the policy reform will result in lower agent commissions or fewer sellers choosing not to offer buyer agent fee coverage.
Here in Las Vegas, the current median home price is nearly $480,000 (which is close to an all-time high).
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