08/18/2024
Most of you have heard the chatter about the NAR Settlement and how the Buyer Representation Commission/Compensation process has changed. I wanted to share some of the details straight from National Assocation of Realtors. Please feel free to ask me questions! I am here to help you!
Here is what the settlement means for homebuyers:
Buyers will be required to sign a written Buyer Agency Agreement with your agent before touring a home.
Before signing this agreement, you should ensure it reflects the terms you have negotiated with your agent and that you understand exactly what services and value will be provided, and for how much.
The Buyer Agency Agreement must include four components concerning compensation:
1. A specific and conspicuous disclosure of the amount or rate of compensation the real estate agent will receive or how this amount will be determined.
2. Compensation that is objective (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended (e.g., cannot be “buyer broker compensation shall be whatever the amount the seller is offering to the buyer”).
3. A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and,
4. A conspicuous statement that broker fees and commissions are fully negotiable and not set by law.
Important Notes:
The requirement for written Buyer Agency Agreements apply to both in-person and live virtual home tours.
Buyers do not need a written agreement if Buyers are just speaking to an agent at an open house or asking them about their services.
The seller may agree to offer compensation to your buyer’s agent. This practice is permitted but the seller’s offer of compensation cannot be shared on a Multiple Listing Service (MLS)— (MLSs are local marketplaces used by both buyer brokers and listing brokers to share information about properties for sale.)
Buyers can still accept concessions from the seller, such as offers to pay the Buyer’s closing costs.
These practice changes will go into effect August 17.
Here is what the settlement doesn’t change:
1. Agents who are REALTORS® are here to help Buyers navigate the homebuying process and are ethically obligated to work in your best interest.
2. Compensation for your buyer’s agent remains fully negotiable, and if your buyer’s agent is a REALTOR®, they must abide by the REALTOR® Code of Ethics and have clear and transparent discussions with you about compensation. When finding a buyer’s agent to work with, ask questions about compensation and understand what services you are receiving.
3. Buyers have choices. Work with your buyer’s agent to understand the full range of these choices when buying a home, which will help you make the best possible decision for your needs.
I look forward to helping you!!
919-753-6518
