On August 17, 2024, significant changes were made that will impact the Chicago real estate market, affecting how buyers and sellers work with agents. These changes include the mandatory use of Buyer Broker Agreements and the removal of buyer-broker compensation from MLS listings.
Here’s what to expect:
Mandatory Buyer Brokerage Agreements for Chicago Homebuyers
Starting August 17, all Chicago homebuyers will need to sign a Buyer Broker Agreement before viewing any properties. This agreement outlines the services and compensation provided by the broker, similar to the listing agreements that sellers sign. Although this may seem new, Buyer Broker Agreements have long been a part of the real estate process and are now becoming standard practice across the industry. This change benefits Chicago homebuyers by clearly defining the services they’ll receive and the associated costs.
Changes in Buyer-Broker Compensation in the Chicago Real Estate Market
The new regulations mean that the MLS will no longer display buyer-broker compensation. Chicago homebuyers and sellers will now negotiate compensation separately.
For Chicago buyers, this means the seller may not cover their agent’s compensation. Buyers can request that the seller cover these costs through the sale proceeds or choose to pay their broker directly, or a combination of both. If cash flow is a concern, buyers may adjust their down payment or explore options like credits or grants. I can connect you with loan officer to explore what works best for you.
Sellers in Chicago Can Still Cover Buyer Broker’s Commission
Chicago sellers retain the option to cover the buyer’s broker compensation, either upfront or during negotiations. Many sellers will likely choose to do so, as this can attract more potential buyers and streamline the sale process. However, this decision is ultimately up to the seller.
Chicago Home Offers Will Include Varied Compensation Requests
Since most Chicago homebuyers work with brokers, sellers should anticipate offers that include requests for buyer-broker compensation. It’s essential for listing brokers to help sellers evaluate these offers, ensuring they make informed decisions that lead to the best possible sale outcome.
Conclusion
While the Chicago real estate market is adapting to new regulations, much remains unchanged. Whether you’re buying or selling a home in Chicago, I’m here to guide you through every step, ensuring your best interests are always a priority.
This post originally appeared on @properties Christie’s International Real Estate.