As Michigan’s housing market evolves, 2025 brings noteworthy legal and regulatory updates that could significantly impact your real estate transactions. Whether you’re buying, selling, or developing property, it’s essential to stay informed and prepared. At Harry Ellman Law, we are here to guide you through these changes with clarity and confidence. Below, we outline two major developments that may affect your next transaction and how we can help you navigate them.
Affordable Housing Initiatives
In January 2025, Governor Gretchen Whitmer signed into law a series of bipartisan bills designed to address Michigan’s affordable housing crisis. These measures grant the Michigan State Housing Development Authority (MSHDA) enhanced flexibility to:
- Respond to local market conditions more effectively.
- Streamline its operations to reduce administrative barriers.
- Increase funding for affordable housing projects and programs aimed at first-time homebuyers.
While these laws’ primary goal is to expand access to affordable housing, they have broader implications for the real estate market. For example:
- Increased Housing Demand: By creating incentives for first-time buyers, these initiatives may drive up demand, especially in markets where affordable housing is scarce.
- Development Opportunities: Builders and developers may benefit from new funding opportunities, creating more inventory for lower-income and first-time buyers.
- Regulatory Compliance: Clients engaged in development or selling may need to navigate additional requirements tied to these programs, such as zoning changes or grant applications.
We can help you understand and leverage these new opportunities while ensuring compliance with the latest MSHDA guidelines.
Changes in Real Estate Commission Practices
Another significant shift in the real estate landscape stems from changes to how real estate agents are compensated. As of August 17, 2024, buyers are now required to sign contracts with their agents before viewing homes. These contracts must specify the agent’s compensation, effectively eliminating the traditional practice where sellers paid both the listing and buyer’s agents.
The new system aims to increase transparency and allow buyers to negotiate their agent’s fees directly. However, it also introduces complexities that could affect your real estate transactions:
- Contractual Clarity: We ensure that buyer-agent agreements are clear, legally compliant, and protect your interests. Ambiguities in these contracts could lead to disputes.
- Fee Negotiations: Buyers may require legal counsel to negotiate agent fees, particularly in cases where the cost becomes a barrier to purchasing a home.
- Impact on Sellers: Sellers may need to adjust pricing strategies, as buyers could factor agent compensation into their offers, potentially lowering net proceeds.
We are here to help you understand these changes and their potential impact on your transactions, whether you’re buying, selling, or negotiating contracts.