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        <title>Huntsville, Al Real Estate Blog</title>
        <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/tags/nar-settlement/</link>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/alabama-act-2025-59-what-it-means-for-buyers-sellers-and-agents.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/alabama-act-2025-59-what-it-means-for-buyers-sellers-and-agents.html</link>
        <author>info@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>Alabama Act 2025-59: What It Means for Buyers, Sellers, and Agents</title>
    <description> <![CDATA[ 



Alabama Act 2025-59: What It Means for Buyers, Sellers, and Agents





Homebuyers, sellers, and real estate professionals in Alabama are adjusting to a new legislative update that reshapes how and when consumers partner with agents in property transactions. Responding to concerns over the recent National Association of Realtors settlement requirement for buyer agreements before home tours, the law fine‑tunes agreement timing and strengthens disclosure obligations to provide clearer guidance on brokerage services and compensation. As the first state to enact these reforms, Alabama’s approach underscores a balance between consumer choice and professional transparency.


The NAR Settlement &amp; Why Alabama Pushed Back


So, let’s start with why this change is happening. The 2024 $418 million NAR settlement introduced a rule requiring written agreements with buyers before they could even tour a property. That raised major concerns about limiting consumer choice and potential antitrust issues. While Alabama and its real estate professionals weren’t part of that lawsuit, the rules still impacted transactions statewide, requiring all buyers to sign a buyer’s agreement before viewing a home.


In many cases, it makes sense to interview and hire an agent before viewing homes. However, making it a legal requirement for every buyer and every situation didn’t make sense—especially when meeting an agent for the first time at a property.


To address these concerns, the Alabama Association of Realtors (AAR) pushed for a legislative fix during the 2025 Regular Legislative Session. Thanks to your engagement, we were successful Earlier this week, Governor Kay Ivey signed Alabama Act 2025-59 into law, and it officially goes into effect on April 18, 2025.


Alabama is the first state and the trailblazer in correcting this flawed policy. I expect other states to follow our lead.


What Alabama Act 2025-59 Means for Buyers, Sellers, and Agents


Now, what does this mean for homebuyers, sellers, and real estate agents? Here are the key takeaways:




More Transparency for Buyers – Buyers will now receive clear information upfront about brokerage services and compensation when they first interact with a real estate licensee.


RECAD Disclosures Still Required – The new law reinforces Alabama’s RECAD framework. Before a buyer tours a property, they must receive a Brokerage Services Disclosure Form and a copy of the agency’s Disclosure Office Policy.


Compensation Disclosure – Every agency’s Disclosure Office Policy must clearly explain how agents are compensated, ensuring buyers and sellers fully understand the process. In most cases, buyers are still including a provision in their offers requesting the seller to cover their buyer agent compensation.


No Premature Binding Contracts for Buyers – Unlike the NAR settlement’s original requirement, Alabama buyers will not be forced to sign a binding contract just to view a home. Instead, a written agreement between the agent and consumer is required at key points: For buyers: Before submitting an offer. For sellers: Before listing a property.


Terms of Compensation in Agreements – Brokerage agreements must now clearly outline compensation terms to ensure transparency for all parties.




If you have questions, we offer a free buyer and first-time homebuyer counseling session. We’ve pinned a comment with a link to schedule your free buying consultation.


Don’t forget to like this video and subscribe for more updates on real estate news that impacts you. Thanks for watching, and I’ll see you in the next one





 
 ]]> </description>
    <pubDate>Fri, 18 Apr 2025 13:41:00 -0500</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/new-homebuyer-agreement-requirements-you-should-know-about.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/new-homebuyer-agreement-requirements-you-should-know-about.html</link>
        <author>info@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>New Homebuyer Agreement Requirements You Should Know About</title>
    <description> <![CDATA[ 
New Homebuyer Agreement Requirements You Should Know About





Recent changes in the U.S. real estate landscape are affecting the way agents and buyers approach the home-buying process. With the proposed $418 million settlement in the National Association of Realtors lawsuit, significant shifts are occurring that impact buyer agreements and agent commissions. Attorneys and large corporations like BlackRock stand to benefit from these changes, leaving many wondering how buyers fit into the picture. This article breaks down the implications for buyers, including new requirements for signing agreements before viewing homes, and how to navigate commission negotiations with agents.


Who Are the Real Winners?


The U.S. real estate process was once the envy of the world, but now agents can’t even show a home to their own family without having a buyer agreement signed due to the proposed $418 million settlement in the National Association of Realtors lawsuit. Who are the real winners here? Unfortunately, the biggest winners appear to be a few specific groups. First, the attorneys are set to collect around $256 million from the settlement. As is often the case in lawsuits, they come out ahead.


The second group that may benefit is large corporations like BlackRock. There’s a growing movement toward corporate ownership of housing, with companies like BlackRock buying homes in various neighborhoods. It seems possible that these companies are behind this settlement, hoping to gain from potentially lower commissions if those changes are implemented.In my opinion, these are the two main winners. Buyers, on the other hand, don’t seem to benefit much from this settlement.


How Does This Impact Homebuyers?


If you’re considering buying a home, how does this affect you? The biggest change is that a buyer agreement must now be signed before viewing a home. I think this could be beneficial because buyers should take their time before jumping into the home-buying process. We always encourage buyers to schedule a consultation. During a buyer consultation, we walk you through the entire process, help you plan, and review some of the costs involved. We’ll discuss the benefits of owning versus renting and help you form a winning strategy, especially in the case of multiple offer situations.


So, the buyer consultation could be one positive result from this change. You will need to sign the buyer agreement upfront. However, if you’re not sure about hiring the agent, you can adjust the agreement to cover a specific home or shorten the period. At Matt Curtis Real Estate, you can even cancel the agreement if you’re uncomfortable with the agent you’re working with. It may sound like a significant change, but we’ll make the process straightforward and easy for you.


Changes in Buyer Agent Commission


Another change is the way buyer agent commissions are handled. The commission will no longer be listed in the MLS. What does this mean for you as a buyer? Some agents may panic because they won’t know how much they’ll be paid, which could lead to them calling other agents to find out commission rates. I believe this is the wrong approach. Instead, work directly with your agent to determine a reasonable fee for their services. If you don’t have the funds to cover this, you can ask the seller to include these costs as part of your offer.


Your agent can negotiate these funds so you don’t have to pay out of pocket. We have this figured out at Matt Curtis Real Estate, and we’ll guide you through it. We aim to ensure you understand the process and provide an excellent experience.


We're Here to Help


At Matt Curtis Real Estate, we have this process figured out, and we’ll guide you through it. You can always adjust or cancel the buyer agreement if you’re unhappy with our services. We want to make this process as smooth as possible for you, and our goal is to earn your five-star review at the end.
 ]]> </description>
    <pubDate>Fri, 20 Sep 2024 14:09:00 -0500</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/how-policy-changes-are-influencing-housing-prices-and-affordability.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/how-policy-changes-are-influencing-housing-prices-and-affordability.html</link>
        <author>info@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>How Policy Changes Are Influencing Housing Prices and Affordability</title>
    <description> <![CDATA[ 
How Policy Changes Are Influencing Housing Prices and Affordability








Understanding the current real estate landscape requires a look at how government policies are impacting housing affordability, grocery pricing, and rent control. Each of these factors significantly influences the market and affects both buyers and sellers. This discussion examines why a proposed $25,000 tax credit may not address the housing crisis, how price controls on groceries could lead to shortages, and the potential issues with rent control policies. Additionally, it explores the effects of recent government intervention in real estate, particularly how these changes might affect first-time homebuyers and who stands to benefit the most.


Why a $25,000 Tax Credit Won’t Solve the Housing Crisis


The first thing we want to examine is a potential $25,000 first-time homebuyer tax credit. At first glance, this might seem like a good idea, especially if you're not currently a homeowner. Many people, particularly millennials, are waiting on the sidelines to buy their first home due to the ongoing affordability crisis. We want to help first-time homebuyers get into their homes, as this is a key way to build generational wealth.


Homeowners typically have 40 times the net worth of renters, which highlights the importance of this issue. Unfortunately, this tax credit is not the solution. The real issue is supply and demand. We simply don't have enough supply in this country. Adding more demand without addressing the supply side will not solve the broader housing problem. What is likely to happen is that the $25,000 tax credit will increase home prices by $25,000. While builders and sellers might benefit during this time, first-time homebuyers won't see significant gains. The last time we tried something similar with an $8,000 tax credit, home prices fell back to their original levels once the credit expired.


Even if prices don't drop afterward, this tax credit is still inflationary. It leads to one of two outcomes: either people pay higher taxes to fund this bill, which resembles a socialistic tax, or it adds to inflation because we’re deficit spending without having the money in the first place. This returns us to the same affordability challenge we faced before. You might help people buy a house, but the cost of everything else, like gas and groceries, increases, making it harder to afford living expenses.


The real issue with housing prices is inflation, which the government created. When you compare the actual value of homes to the price of gold, which is considered true money, homes are slightly below average in value. The problem isn’t the value of homes; it’s the situation created by excessive government spending. You can’t solve this problem with the same approach that caused it. The problem was overspending, and if we continue deficit spending, it will only make the problem worse.


Hidden Dangers of Capping Grocery Price Increases


The next point to consider is the proposal to address grocery price gouging by limiting price increases. The root of the problem is the deficit spending that has occurred over the past several years, which has fueled inflation. It’s unjust to place the burden of this inflation on grocery stores, especially given their already thin profit margins. Policies like this have been shown to lead to shortages, which is not something we want in this country. We don’t want to face shortages of essentials like meat and bread, leading to bread lines, as seen in some other countries. Even Jason Furman, who served as a top economist for Barack Obama, has stated that this approach would harm consumers and is not a wise policy.


Why Economists Warn Against Rent Control Policies


Next, let's talk about rent control, which we've already covered in a previous video. Economists agree that rent control leads to shortages and higher prices. There's even a documentary coming out about rent control in New York, highlighting its negative impact. This policy often results in dilapidated buildings where necessary repairs are neglected, leading to shortages and higher prices for units outside rent-controlled areas. It's another policy that I hope won't be implemented across the U.S.


Government Intervention in Real Estate: Impact on Buyers and Sellers


The last topic to discuss is the government's involvement in real estate. Recently, there was a significant real estate settlement, which stemmed from a lawsuit outside of the government, though the DOJ was heavily involved. The challenge we face is a housing affordability crisis across the U.S., and politicians are reluctant to take responsibility. They prefer to blame the Federal Reserve for creating deficits, which have led to higher prices and interest rates, fueling the crisis.


So, who is struggling the most right now? It's those who don't own homes. The NAR settlement brought a few changes, one being that buyer compensation will no longer be listed in the MLS, changing the system as we knew it. The intention might be to lower commission rates, but this doesn't help the people who need it most—homebuyers, particularly first-time buyers. In fact, it could increase their out-of-pocket expenses if sellers don't assist with buyer agent compensation. This could even prevent them from purchasing a home if they lack the funds for closing costs.


So, who benefits? It might help sellers, but probably not, since most sellers are also buying homes. The real winners could be those with multiple properties to sell, and that’s often Wall Street. Institutions like Wall Street have been buying up large numbers of homes. This settlement could potentially benefit them by reducing the overall cost of selling homes, enabling them to flip and trade homes more quickly.


As someone who works with real estate agents, I've been in touch with agents from different countries recently. They consistently tell me that our system is the best and most efficient in the world. Our MLS system allows easy access to all listings, while in other countries, you might have to visit numerous websites and contact multiple brokers, which can take days or even weeks to gather all the available properties. Often, you only get a fraction of what’s available compared to the comprehensive data provided by the MLS.


We also had a buyer compensation model that benefited both buyers and sellers. Many countries still use this structure. We had the best system in the world, but now we’re taking a step back for homebuyers. Additionally, when you look at other countries, another advantage we have is financing. The U.S. offers the best and easiest financing terms in the world. We need to keep America the easiest place for homeownership because homeownership is crucial, and we need to get more first-time buyers into homes. One of the best ways to achieve this is by keeping the government out of real estate, allowing us to continue focusing on serving clients and providing the best value for our buyers and sellers.


 



 ]]> </description>
    <pubDate>Fri, 23 Aug 2024 14:02:00 -0500</pubDate>
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    <guid>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/nar-settlement-changes-whats-different-for-buyers-and-sellers.html</guid>
    <link>https://www.mattcurtisrealestate.com/HuntsvilleAlRealEstateBlog/nar-settlement-changes-whats-different-for-buyers-and-sellers.html</link>
        <author>info@mattcurtisrealestate.com (Matt Curtis)</author>
        <title>NAR Settlement Changes: What’s Different for Buyers and Sellers</title>
    <description> <![CDATA[ 
NAR Settlement Changes: What’s Different for Buyers and Sellers


The recent changes resulting from the NAR Settlement are set to reshape various aspects of real estate transactions. Buyers and sellers should prepare for updated procedures and adjustments in how fees are handled. This includes the introduction of new requirements for buyer agreements and modifications in how buyer agency commissions are managed. Understanding these updates will be crucial for navigating the evolving real estate landscape.


Effective Dates for NAR Settlement Changes


As part of the proposed $418 million settlement in the NAR lawsuit, there will be a few changes for both buyers and sellers in the Tennessee Valley. You might be wondering when these changes will go into effect.


Nationwide, the changes are set to take place on August 17th. This applies to all realtor-owned MLSs. Although the proposed settlement hasn't been officially finalized—and it’s not expected to be until the end of this year or early next year—the changes will still go into effect on August 17th across the U.S. It’s possible that some of these changes might be adjusted over the coming months and into 2025.


Our local board in North Alabama decided late last week to implement these changes earlier, effective August 1st. As a result, all of the changes we’re discussing are now in effect. Matt Curtis Real Estate has already incorporated these updates for both our buyers and sellers. When you contact Matt Curtis Real Estate, we will be ready to address these changes with you.


How the Latest Settlement Changes Buyer Agreements and Home Viewing


One of the main changes with the new settlement is that buyer agreements must now be in place before viewing a home. This applies to anyone involved in the viewing process, even if it's parents, siblings, or anyone else who is old enough to purchase a home. They need to be included in that buyer agreement as well. This can be seen as a downside.


On the positive side, I believe we’ll see more buyer consultations taking place, which will help educate buyers on the process, the estimated funds needed to close, and strategies for navigating the market. This approach benefits both agents and buyers by encouraging a slower, more informed start to the process.


The challenge will come with what we call &quot;pop-tart showings&quot; in the industry, where someone wants to quickly view a home without fully considering the process. Even in these situations, a buyer agreement is still required. If you're just getting to know the agent you’ve called and aren’t ready to commit to a full buyer agency agreement for the entire process, you can consider shortening the agreement period or specifying it to the particular home or homes you’re viewing. This gives you time to build trust with the agent and decide if they are the right fit to help you purchase a home.


How Buyer Agency Fees Are Affected


A second major change is that buyer agency commissions are no longer advertised in the MLS. Previously, when a listing agent met with a seller, they would agree on a listing commission. Often, the listing agent would share that commission, sometimes splitting it evenly with the buyer's broker who brought in the buyer that ultimately completed the sale. This arrangement meant buyers didn’t have to worry about additional out-of-pocket expenses because the seller was covering the commission, which was essentially factored into the purchase price of the home.


Now, buyer agents can no longer see commissions advertised in the MLS. Some brokers will still work with their sellers to offer buyer broker compensation, but they'll look to advertise it through other means such as websites, phone calls, and other emerging platforms where agents can share that information. I don’t believe this was the Department of Justice’s intention with this rule change.


Matt Curtis Real Estate will no longer participate in broker-to-broker commission sharing. Instead, there will be something called seller concessions, where the seller may still choose to pay the buyer’s broker, similar to how they might cover closing costs to help the buyer afford the home. This option will still be available, but we believe broker-to-broker commission sharing should not continue if we follow the spirit of the DOJ's new rules. At Matt Curtis Real Estate, commissions will be kept separate, and while sellers may still pay a significant portion of the buyer broker’s commission, it will be negotiated in the contract rather than advertised on websites or through other channels. Many of our sellers might opt for seller concessions, but these will not be directly tied to buyer broker commissions.


Navigating Buyer Agent Fees


If you're a buyer working with a buyer's agent, what does this process look like? You'll sit down with your agent—whether it's on the hood of a car outside the home, or preferably in an office or coffee shop—to go over a buyer agreement and have a buyer consultation, walking through the entire process. You'll agree on the terms up front with your agent. Many buyers and agents will try to negotiate that fee into the contract. Some sellers, as mentioned earlier, may already be offering buyer commissions, though I believe the better approach is for sellers to offer concessions instead.


These seller concessions can be used for whatever the buyer needs. This is similar to what we've already seen, where buyers might need help with closing costs or, in the current market, rate buydowns to afford a home. Many builders are offering similar incentives right now. So, seller concessions can be used towards closing costs, rate buydowns, or even buyer agency commissions. Many sellers will likely offer this. At Matt Curtis Real Estate, we'll aim to negotiate these costs into the contract so that the seller covers them, helping to minimize the expenses buyers face for buyer agent commissions.


How Real Estate Changes Impact Sellers


All right, we've covered a lot about the changes affecting buyers and, indirectly, sellers as well. Now, let's break it down for the sellers.


First, we’ll be updating the paperwork for sellers. This will now include just the listing fee, rather than a fee that covers both buyer and seller commissions. The paperwork will focus solely on the listing company’s fee.


While some brokerages may continue to share buyer agent commissions, I believe this is the wrong approach and could potentially lead to issues with the Department of Justice or even lawsuits. Many companies, including ours, will be moving towards seller concessions instead. Sellers who are willing to offer concessions to buyers can plan for this upfront. These concessions can be used for whatever the buyer needs, whether it’s to cover buyer brokerage compensation, rate buy-downs, closing costs, or a combination of these.


Buyer broker compensation will also be handled through the contract, rather than being included in the listing agreement or advertised in the MLS. This compensation will need to be detailed in the additional provisions section of the contract, specifying how the buyer broker will be paid.


As a seller, you’ll need to consider any additional expenses that may arise with the sale of your home. This includes not just the sales price, but also any seller concessions for buyer broker compensation or buyer closing costs that may be necessary. These should be addressed in the contract’s additional provisions section.


 


Will Recent Real Estate Commission Changes Address the Affordability Crisis?


I've seen some articles suggesting that these changes might help address the affordability crisis, but unfortunately, this isn't the solution. Here’s why:


Even in an extreme case where commissions drop by 1 to 3, it won't significantly impact the affordability crisis. Over the last few years, we've seen a 40 increase in home prices, largely due to the massive amount of money printed during the pandemic. A small reduction in commissions won't offset that 40 increase, so it won't solve the affordability issue.


The main challenge we face is government spending, deficit spending, and the Federal Reserve printing money. These issues won’t be resolved by the proposed changes. Politicians often avoid responsibility for their actions and shift blame to others, proposing solutions like rent control or changes to commission structures. However, the real issue with affordability is higher borrowing costs due to increased interest rates—resulting from Federal Reserve policies—along with inflation caused by deficit spending and money printing. In the best-case scenario, some sellers might benefit from lower buyer agency fees, which means the sellers would actually be the ones benefiting from this proposed change.


In a best-case scenario, some sellers might benefit from lower buyer agency fees, meaning they could come out ahead with these changes. But most buyers likely won't see much improvement, as home prices and values aren't expected to drop because of this. Buyers might get their full commission covered through the contract, which is likely to happen often.


If that doesn’t happen, buyers will need to cover the difference in higher fees, potentially making this a neutral situation for them. Sellers could benefit slightly, but for many, the impact will be neutral as well.


If all these changes seem complicated, that's where we come in. We're the number one real estate team in Alabama, and we stay on top of all these developments for you. Contact the top team in Alabama for the past five years to help guide you through these changes, whether you're buying or selling. We'll help you maximize the value of your home or navigate the purchase process so you don’t end up paying unexpected out-of-pocket fees.


 



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    <pubDate>Fri, 02 Aug 2024 14:24:00 -0500</pubDate>
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