Birmingham Real Estate Agent Provides Insight on New Realtor Rules Effective August 17
BIRMINGHAM, Ala. – A significant change is about to sweep across the real estate industry and could alter the way you approach house sale and purchase. Local real estate authority, Jasmine Kemp, an agent at Exp Realty, provides her professional perspective on the impending changes set to take effect on August 17.
New Regulations Enhance Transparency
The primary goal of the soon-to-be-implemented changes, according to Kemp, is to enhance transparency within the real estate sector. “As agents, we can no longer show you a property without having first reached some form of mutual understanding, which must be established in writing,” she pointed out.
“We will not set a for-sale sign on your lawn before having sat down with you to discuss expectations, rights, and the next steps. This requirement will now also apply to buyers,” she further explained.
Kemp believes the up-gradation in the rules will ensure more transparency about the commission plans, both for buyers and sellers alike. She noted, “The most critical thing to understand is what remains unchanged. Commissions have always been negotiable, and they will continue to remain so.”
Major Changes to Commissions
Historically, a seller’s agent would charge the seller a stipulated 5 to 6 percent commission on the home’s selling price, a portion of which would be shared with the buyer’s agent. However, under the revised regulations, sellers will no longer have to cover the commission for the buyer’s agents.
This consequential alteration originates from a settlement that the National Association of Realtors announced in March. Kemp describes a fundamental shift in the way commissions will now be arranged, differing substantially from the former customary practices.
“Previously, we negotiated both the listing fee and the buyer’s agent fee upfront. The predetermined sum would then be paid irrespective of the contract price or the appraisal value. While these numbers sometimes varied, there was generally a consistent rate across the board,” she said.
New Changes Bring New Opportunities
Kemp expresses a compelling take on the forthcoming changes, observing an opportunity to redefine the public’s perception of realtors. “A buyer’s agent is so much more than just someone who opens the door. That is the very least that we should be doing for you. Now we have an opportunity to sit down with buyers, explain our value, and then deliver the service that proves we earn our keep,” she explained.
Ultimately, she emphasized that your agent’s level of involvement in the home buying or selling process depends predominantly on the previously discussed and agreed-upon expectations, and that naturally varies from person to person.
These comprehensive changes aim to make the real estate industry more transparent, with greater flexibility in commission negotiation, rendering an enhanced home-buying experience for everyone involved.
Disclaimer
This news is based on the most recent information available as of the time of writing and may be subject to change after the publish date.
Author: STAFF HERE BIRMINGHAM WRITER
The BIRMINGHAM STAFF WRITER represents the experienced team at HEREBirmingham.com, your go-to source for actionable local news and information in Birmingham, Jefferson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Sidewalk Film Festival, Sloss Music & Arts Festival, Magic City Classic, and civil rights commemorations. Our coverage extends to key organizations like the Birmingham Business Alliance and the Birmingham Civil Rights Institute, plus leading businesses in healthcare, finance, and manufacturing that power the local economy such as UAB Medicine, Regions Bank, and Encompass Health. As part of the broader HERE network, including HEREHuntsville.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.
