07/31/2024
HOME BUYERS
If you are considering buying a home anytime in the future or are currently on the home search, please be aware that big changes are on the horizon in the coming weeks. Two of the most notable changes as I understand them so far:
1. Prior to viewing a home, even if you are just barely getting started in the process, you will be presented with a disclosure to sign, with which will trigger a discussion on how the person showing you the home would eventually get paid should you follow through with a purchase. You are not required to work with this agent to the end if you sign this, it merely discloses types of agency relationships and should you continue to work with them, what their compensation will be...which can further down the line be negotiated as follows:
2. Compensation offered by seller to pay buyers agents will no longer be displayed on the MLS and some sellers may not offer it at all--
With that being said, buyers you are going to want to know the options for paying your buyers agent. Some of these options are
Out of pocket, negotiated into the purchase contract with seller, allowable % added to your loan costs (lenders correct me if I'm wrong). Maybe you opt to not see any homes that don't offer compensation to your agent because you can't afford to pay them out of pocket.
If I'm being honest, I think this is going to be a convoluted mess, and going to take several months for the market to work out new norms which makes an even stronger argument as to why you need to have a kickass agent in your corner. Don't be afraid to talk about compensation and realize...we are independent contractors, we don't get paid until we get to the closing table. Just as a lawyer, plumber or electrician sets their rate or %, as do we and just like those services, you have the right to shop around.
More resources:
NAR’s recent settlement has led to several changes that benefit homebuyers. Agents who are REALTORS® are a trusted source of advice and stand ready to help you navigate your homebuying journey and make the choices that work best for you.