Earlier this month, changes related to a National Association of Realtors (NAR) settlement took effect. I am confident that Utah’s Realtors, as always, are prepared to assist clients in understanding these new complexities and ensuring their real estate transactions proceed smoothly.

Many people have publicly discussed what the settlement means. Some have said nothing really changes, while others have suggested this complex agreement will radically alter the real estate industry and market.

So, what are the facts? And what does this really mean for Utah consumers and Realtors?

Fundamentally, the settlement makes two changes. Here’s a look at those, as well as the big picture:

Change 1: Buyer’s agents will sign a written agreement with a buyer before showing properties

Realtors working in Utah have had signed written agreements with buyers for more than two decades. With this settlement, the rest of the country is now catching up to this proactive, pro-consumer policy that has been in place in our state for years.

What will change is when this will occur in the process — it will happen right at the outset, before a buyer views a home. This change will help buyers better understand their choices and options at the very beginning of the journey to purchase a home. Buyers can expect upfront conversations about the duties and responsibilities of their agent, the service and value provided, and the cost of services.

Most importantly, the buyer and buyer’s agent will review the benefits the buyer will receive by having a trusted professional represent their interests — not the seller’s.

Change 2: Listing agents will communicate offers to pay for a buyer’s agent differently

The multiple listing service (MLS) is a database where agents share property information and advertise listings. Under the settlement, a listing agent who offers to help pay for the buyer’s agent will no longer do so on the MLS. Instead, they’ll communicate terms elsewhere. This change will create more dialogue between buyers, sellers and their agents.

Sellers will continue to have conversations with Realtors about the best ways to market their properties and attract buyers based on current market conditions. Strategies such as:

• Authorizing their broker to compensate the buyer’s agent.
• Paying the buyer’s agent as part of the real estate negotiation.

Buyers will likewise discuss and explore options for compensating their agent. These may include:

• Paying their agent directly.
• Asking the seller to cover the cost.
• Choosing a home where the seller’s broker helps offset the cost.

While this change will create some additional complexity — especially during negotiations between buyers and sellers — the net outcome is increased communication. Expect even more dialogue about choices and strategies.

The big picture

From my perspective, the settlement makes working with an expert more important than ever. Buying or selling a home is one of the most complex and significant transactions in someone’s life — and the settlement is likely to add even more intricacies to that process.

What isn’t changing is that buyers and sellers can continue to operate with a strong level of confidence, knowing they are working with experts who understand the local market and can help them navigate the new changes and complexities.

Working with a Realtor will be a valuable advantage that allows you to keep your eyes on what’s most important: getting the right home, in the right place, at the right price.

Adam Kirkham is the president of the Utah Association of Realtors. Kirkham is a seasoned Realtor with extensive experience in the Utah market.