08/17/2024
🏡ATTENTION HOME BUYERS🏡
On August 17th, all buyers currently looking to purchase a home, MUST sign a "Buyer Representation Agreement"- prior to walking into a property.
✅ JUST SHOW ME THE HOUSE!!
Starting August 17th, NO REALTOR will be able to unlock a door without you first signing the agreement 🤯 This will be non-negotiable for any person with a Realtor designation. ACROSS THE ENTIRE COUNTRY.
✅ Wait…WHAT DO I HAVE TO SIGN??
The agreement between buyer and Realtor is a Buyer's Representation Agreement, the contract between you and that Realtor stating you will be using them to buy a home. It will break down the roles, duties and responsibilities owed to you by your agent etc. This form also spells out what broker compensation is to be paid by you and/or the seller. Whatever compensation is on this agreement is the MAXIMUM compensation your broker/agent can receive out of the transaction.
✅ I HAVE TO PAY COMPENSATION?
Well yes…but actually maybe no… 🤔
With the new NAR ruling going into effect, advertising cooperating broker and buyer broker compensation will now be BANNED on the MLS. So, now when your agent shows you a home, they may likely not have any idea if they are going to get paid from the transaction. Compensation has always been negotiable of course, and there are a number of ways your agent can get paid. By the seller either in the form of direct compensation to Buyer brokerage or as a form of concession/credit to buyer. In some cases, the buyer will be paying the compensation for their agent out of pocket and this will be spelled out in the buyer's representation agreement.
✅ HIRE A PROFESSIONAL AGENT
Selecting an agent when buying a home is an important decision.
This new rule with a buyer representation agreement is just one facet of the NAR ruling which will change the landscape of how real estate is sold in the United States. 🇱🇷
✅ ALIGNMENT & COMMUNICATION
Now, more so than ever, aligning yourself with a full-time professional Realtor will be vitally important for the success of your home purchase. Sellers and sellers' agents likely will continue to offer your buyers' agent compensation from their agreed upon amount on their listing agreement when all is said and done. It will simply now be written in in your contracts and offers.
It is even more important for buyers to choose experienced professional agents to represent you to navigate negotiating on your behalf. Sellers' agents do not owe you a fiduciary responsibility.
**copied and edited
