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2024 REAL ESTATE CHANGES THAT AFFECT ALL BUYERS IN MICHIGAN

The recent National Association of Realtors settlement has changed the way Realtors (members of a Multi List Board) throughout the US will do business and how they must state what type of compensation ( commission, flat fee, cafeteria fees, or hourly) they want.  All things are negotiable; shop around for a selling broker.

Sellers will still need to carefully review the terms of a listing agreement and whether to give up their right to sell on their own. 

With buyers now needing to contract with a buyer agent, and set a compensation, buyers need to also read that contract carefully. Some terms might not protect a buyer from having the information they want to be held confidential from being disclosed to a seller. Some contracts may say you are only to look at houses with the buyer agent.

The total "commission" that has been around 6% in Michigan since the 1960's might remain. Negotiations must be carefully placed in a Purchase Agreement. Remember, in Michigan, there is no standard purchase agreement.

Having a Lawyer handle the buyer's needs should be considered. A lawyer is obligated only to represent the buyer. The cost is significantly less than a 3% commission would be. A real estate agent is not allowed to practice law...only a lawyer is licensed to do that.

Some brokers may stop being members of a Board of Realtors to circumvent the court-approved settlement. Some buyers may want to go it alone without anyone representing them. Be careful out there.

Home prices may not drop much until all the costs of selling and title policies are more reasonable.​