Have you heard the news? Following an antitrust lawsuit, changes to the real estate world are now effective in Sun Valley, Ketchum and Hailey, Idaho
Here Are the 3 Big Changes Following the Lawsuit
- Commissions are negotiable and Sellers must decide if and how much they will pay a Buyer Broker.
- Home Buyers must sign an agreement with a Broker prior to touring any property in Hailey, Ketchum or Sun Valley when buying a home.
- Brokers can no longer share within the MLS their agreements to pay, such as compensation to a Buyer Broker.
Let’s Break This Down in Real Terms
#1 Commissions
Historically, when selling a home in Ketchum, Sun Valley or Hailey, the Seller would pay both Brokers involved in the sale. This rate has always been negotiable but typically set at 5%-6% of the sale price. This rate is entirely negotiable and should be discussed prior to any agreements.
You should have a clear and transparent discussion with your agent regarding compensation. You should also have a clear understanding of the services your agent will provide.
Pros to New Laws
The laws are intended to improve communication with your agent regarding compensation when selling a home in Sun Valley, Hailey or Ketchum, Idaho.
Cons to New Laws
Sellers must weigh the cost of paying a Buyer Agent to remain attractive within the market. When selling a home in Ketchum, Hailey or Sun Valley, it may be beneficial to offer compensation to a Buyer Broker to make your home more attractive to Buyers.
#2 Buyer Agent Agreement
Buyers must negotiate ahead of their search how much they will pay their Buyer agent and if that payment will come from the Seller or themselves. The payment to a Buyer Broker can come from:
- The Seller,
- The Buyer, or
- A combination from both the Buyer and Seller
When buying a home in Hailey, Sun Valley or Ketchum, Idaho you must have a clear discussion with your agent before touring properties.
I believe this is the biggest change! Anyone buying a home in Sun Valley, Ketchum or Hailey must take time to understand the new rules.
- Buyers must decide ahead of their home search with an agent how much their agent will be compensated.
- Buyers must read the fine print of a contract to understand how they can exit a Buyer-Broker agreement
- Buyers must sign an agreement with a Broker before touring a home. These agreements can be binding anywhere from 1 day- 6 month term.
Pros
Communication with a Buyer Broker must be extensive prior to signing a contract.
Cons
In my opinion, Buyers now have more disadvantages. Buyers are now obligated to sign a contract with an agent who shows them a home on Day 1. This contract can be active for 1 day or 1 year and should address how the agent will be compensated. Most Buyers are not in a position to commit to an Agent on Day 1 and sign an agreement for payment.
Buyers must understand the new rules and advocate for themselves.
#3 How Do I Know If A Seller Is Paying A Buyer Agent?
This becomes confusing because commissions can no longer be shared over the MLS or Zillow. The Buyer or Buyer agent must have a discussion with the Listing Agent regarding the Sellers cooperation with commissions.
The new Purchase and Sale agreements have an added paragraph regarding Buyer Agent Commission. Buyers are able to ask the Seller for commission payment to their Buyer Agent within the Purchase Agreement.
Wow. Change. And no one knows how this will all play out yet. Have conversations with your brokers regarding these changes and understand your options!
Want to discuss these changes?
Call Kirsten: (208) 721-4131
Email: [email protected]
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