Major Real Estate Changes in New Jersey: What You Need To Know
The real estate landscape in New Jersey is evolving, with new rules from the National Association of REALTORS® (NAR) that will affect home buying and selling in the state. Here’s a quick guide to the changes and how they impact your real estate journey in New Jersey.
1. Negotiating Agent Compensation
What’s New: Buyers and sellers in New Jersey now need to negotiate how agents are compensated and what services they will provide.
What You Should Do: When selecting a real estate agent, ask specific questions about their fees and services to ensure you’re fully informed.
2. Signed Buyer Agreements
What’s New: Before touring homes in New Jersey, buyers must sign a written agreement with their broker. This document will detail the terms of service and agent compensation.
What You Should Do: Make sure you sign this agreement before viewing properties, whether online or in person. It sets clear expectations for both parties.
3. Offers of Agent Compensation
What’s New: Sellers or listing agents can no longer display buyer agent compensation on Multiple Listing Services (MLS). Compensation will now be communicated directly.
What You Should Do: If compensation is not offered, you can include this request in your offer. If the seller declines, you will be responsible for paying your agent according to your agreement.
4. Commission Payments and Financing
What’s New: Commissions can now be included in your mortgage payments.
What You Should Do: Be prepared to handle commission payments separately if they are not rolled into your financing.
The Bottom Line
These changes are designed to increase transparency and empower home buyers and sellers across New Jersey. Understanding these rules will help you make informed decisions, ensuring a smoother real estate process. Stay updated to make the best moves in the New Jersey real estate market!