DES MOINES, Iowa — A long-time real estate agent in Des Moines is weighing in on new regulations that change how agents are paid.
The historic shake-up came over the weekend as the National Association of Realtors implemented a multi-million-dollar settlement, which was settled last March.
Previously, the home seller has paid the commission that's usually split between the listing and buyer's agents. Now, buyers will have to pay a commission to their agent, and sellers only have to pay their own agent.
Another big change under the new rules: the National Association of Realtors can no longer require commission rates be posted on the Multiple Listing Service, a private database that lists property information entered by agents and utilized by a seller.
Erika Hansen, a real estate agent with nearly two decades of experience in the metro, has been working to educate buyers and sellers on the changes for months.
"Now, agents really have to just do the extra legwork of calling one another, texting one another, you know, whatever means they want to communicate to see what the seller is offering that," Hansen told Local 5.
The Iowa Real Estate Transparency Act, which took effect on July 1, is also changing the narrative. Moving forward, real estate brokers and prospective buyers must sign a buyer agency agreement before even looking at a home.
This will make the process more transparent for all, according to Hansen.
"The buyers agreement has always been an option. It's always been out there," Hansen said. "It's really meant to bring transparency as to what my duties to you are and how I'm going to help you through that process."
Hansen also emphasized that now more than ever, it's important for prospective home buyers to have a trusted and licensed realtor by their side, given they will be required to sign a legally binding agreement.