Published in RealClearPolicy

The president took a notable step with an executive order aimed at addressing the U.S. housing crisis, emphasizing the need to increase homeownership across the country. Today, with bipartisan calls for expanded housing supply and affordability, the housing market could be poised for change.

In the D.C. metro area, early indicators suggest a shift toward a more favorable buyer's market. The number of active home listings was up by 64% in March compared with the same period in 2024. Meanwhile, the median listing price in the DMV has cooled by a little under a percentage point, to $604,900.

Still, some uncertainties remain, with mortgage rates higher than pre-pandemic levels. The direction of rates depends on several factors ranging from the Federal Reserve's monetary policy to labor market conditions and inflation trends. And as aspiring home buyers look to come off the sidelines amid a new administration, additional shifts in policies — including the latest return-to-office order — could influence the local housing market.

But no matter what lies ahead, home buyers should be aware now of important changes to the buyer-agent relationship resulting from a now-finalized settlement involving the National Association of REALTORS ®. Recently approved by a U.S. District Court judge, the settlement aims to foster greater transparency, consumer choice, and competition in the real estate marketplace.

The biggest change is that written agreements between buyers and their agents are now mandatory and must clearly outline the terms of the working relationship. While versions of this have been in effect for Maryland and Virginia, this rule will be new for consumers in Washington, D.C., although many REALTORS® had already been using the agreement as standard practice. These new signed agreements detail fee structures, amounts and services a REALTOR® will provide.

Importantly, as before, an agent's compensation is fully negotiable, and these documents reflect that fact. Once a person decides to work with an agent who is a REALTOR®, the written buyer agreement must be signed before the agent tours a home with that buyer.

Buyers get to negotiate the length of the agreement, compensation and services they expect from their agent. For example, an agent can be paid with a flat fee, an hourly rate or a percentage of the sale price.

Buyers can also decide the scope of their agents' work that best supports their needs. Perhaps they'd like a wide range of services — like coordination of inspections, valuations and loan pre-approval. Other buyers may just be looking for someone to show them suitable houses and handle negotiations with the seller.

In other words, the buyer is in the driver's seat.

Buyers who are just starting to explore the market — say, by attending an open house on their own — need not sign an agreement. The new requirement applies when a person begins working with an agent — when the agent starts providing services like identifying potential properties and arranging tours.

Buyers should also be aware that they are responsible for paying their agent's commission based on the terms of their written agreement. A home seller is permitted to offer compensation to the buyer's agent. A home buyer can ask a seller for that compensation. However, such offers cannot be publicized on multiple listing services, the local databases agents use to share information on properties for sale.

Home sellers may still offer concessions to potential buyers — like paying buyers' closing costs — as a way to make their listings more attractive.

The bottom line is that buyers now have more control over the expenses associated with buying a home — and they'll know in advance what those expenses are.

Despite these changes, as well as any forthcoming policy or regulatory changes under the new administration, the fundamentals of the market haven't changed. Location still reigns supreme; inspections remain crucial and financial planning is as important as ever. And as always, agents who are REALTORS® are fully equipped to help home buyers and sellers navigate the process — and adhere to a strict Code of Ethics that requires them to protect and promote their clients' best interests.

It's important to ask questions when choosing an agent. Home buyers deserve clear, timely answers about compensation and services. They have the right to negotiate over what they want out of the buyer-agent relationship.

While certain aspects of the DMV's housing market are in flux, REALTORS® remain trusted guides for home buyers and sellers alike. And with the changes put in motion by the court-approved settlement, buyers should have more confidence and certainty about finding the home of their dreams than ever before.

Christopher Suranna is a REALTOR® licensed in Maryland, Virginia, and Washington, D.C and Immediate Past President of the Greater Capital Area Association of Realtors®. For free consumer guides that help buyers and sellers navigate the transaction process – from written buyer agreements to negotiating compensation – visit www.facts.realtor.