LAS VEGAS (KTNV) – If you want to move on to a home on the market in the Las Vegas Valley, you now need to sign a written contract with a real estate agent.
This is because new regulations on buying and selling come into effect this week.
These new rules will make it more difficult to buy a home in the Las Vegas Valley
Home sellers traditionally pay a buyer's agent a blanket commission when they list their home on the market. According to the Associated Press, that will no longer be allowed due to various changes to American real estate industry practices.
A buyer may attempt to negotiate such an offer from the seller. But if they refuse, it will drag the buyer into paying for their agent's services.
The National Association of Realtors is behind the policy changes, which stem from $418 million in federal class-action lawsuits earlier this year that forced American homeowners to pay artificially inflated real estate agent commissions when they sell their homes.
And, as we mentioned above, potential buyers now need to contract with an agent to tour a home on the market.
« It's confusing to some people, especially because it requires a lot of explanation, » says Chris Cesena, a Las Vegas resident who has had his home on the market for three months.
David Lee, local realtor and owner of Painted Desert Realty, says the changes won't have a big effect at the end of the day, but there will now be more steps in the home buying process.
« It doesn't slow anything down; it really doesn't, » he said. « New steps need to be taken, but an experienced realtor handling a situation that shouldn't be too much of a problem. »
The new rules apply to brokers and agents who represent clients looking to buy or sell a home advertised on the National Real Estate Association's multiple listing services or MLS.
They boil down to two significant changes:
- Listings posted on the MLS no longer include blanket offers to compensate buyers' agents on behalf of sellers (although they may be made in other ways).
- And homebuyers are required to sign detailed representation agreements when hiring an agent.
If you still have questions, we asked Lee to summarize the changes. Here's how he explained it:
Las Vegas Realtor David Lee explains the new rules for buying and selling homes
It remains to be seen whether the policy reform will lead to lower agent commissions or fewer sellers not offering to cover buyer's agent fees.
Here in Las Vegas, the median price for an existing home is now near an all-time high of $480,000.
