Anyone who has been a realtor in Utah for any significant amount of time has seen the ebb and flow of the real estate market, and while some things remain constant, recent changes due to the National Association of Realtors (NAR) settlement have introduced new push points to the home-selling process. However, despite these changes and all the media attention surrounding them, the core aspects of selling a home in Utah remain the same. Sellers will continue to seek professional representation, aiming to sell their homes for top dollar with minimal hassle, and buyers will still desire expert guidance. Yet, understanding what has and hasn’t changed is the question at hand for anyone looking to navigate Utah’s real estate market today.
The Core of Selling a Home Remains the Same
Let’s start with what hasn’t changed. Selling a home in Utah still hinges on the fundamentals: a strong marketing plan, local expertise, and skilled negotiation. Sellers who want to maximize their home’s value and minimize stress will continue to rely on experienced Realtors who know the market inside and out. From staging a home to crafting a compelling listing, ensuring that a property is positioned attractively and strategically, and then negotiating from a position of power remains as critical as ever. The goal is the same: to expose the home to the maximum number of potential buyers, thereby driving up demand and securing the best possible sale price.
The Shifting Landscape of Realtor Compensation
However, the landscape has shifted when it comes to how Realtors are compensated, particularly in relation to how buyer agents are paid. Traditionally, the listing agent would negotiate a commission from the seller that covered both their services and the buyer’s agent’s services. This approach worked well because it removed a significant cost barrier for buyers, who often have less cash on hand. By covering the buyer agent's fee, sellers and their agents could attract more buyers and streamline the process.
The NAR settlement, however, requires that compensation for listing agents and buyer agents be decoupled. This means that the seller’s agent and buyer’s agent must now negotiate their fees separately, and sellers can no longer advertise a blanket offer of compensation to buyer agents on the Multiple Listing Service (MLS). The MLS, a database Realtors use to list properties and find potential buyers, will no longer have a field where agents can advertise in advance how much they are willing to pay a buyer’s agent.
What Does This Mean for Utah Sellers?
For sellers in Utah, this change means a shift in strategy. While you can still agree to cover some or all of a buyer agent’s costs, this will now be a point of negotiation rather than an expectation that is always advertised upfront. Working with your Realtor, you’ll need to decide how to position your home in a way that remains attractive to buyer agents and their clients. This could mean contributing to buyer agent fees to maintain a competitive edge or focusing on other aspects of your listing to draw in potential buyers.
The Utah market has shown resilience and continued demand, even in changing times. The statewide median home price continued to increase. At $509,900, the median rose nearly 4% from last year in June. However, inventory remains tight, and buyer competition is fierce, making it all the more important to ensure your home is accessible and appealing to a broad audience, including both represented and unrepresented buyers.
Adapting to New Realities with Your Realtor
Your Realtor will play a critical role in navigating these new realities. A good one will help you assess market conditions, your personal goals, and how best to attract qualified buyers. Some sellers may choose to disclose upfront their willingness to cover buyer agent fees, while others might prefer to keep this information confidential and use it as a negotiation tool once offers start coming in. In any case, it’s essential to discuss how to handle buyers who contact your agent directly. If a buyer is unrepresented, your agent’s fiduciary duty remains solely to you, but this could also create a situation where the buyer may request dual agency, where your agent represents both parties.
The Path Forward
While the recent changes from the NAR settlement have altered some aspects of the home-selling process, the fundamentals remain the same. Sellers who work closely with an experienced Realtor will still be able to position their homes effectively in the market, attract a wide range of buyers, and negotiate the best possible deal. By understanding the new rules around agent compensation and adjusting your strategy accordingly, you can ensure that you’re still getting the maximum value for your home.
Selling a home has always been a significant undertaking, but with the right guidance and a clear strategy with an educated Realtor, it will remain a successful process for both seller and Realtor — even in the face of change.
