08/21/2024
๐กATTENTION HOME BUYERS ๐ก
On August 17th, all buyers currently looking to purchase a home, MUST sign a "Buyer Representation Agreement"- prior to walking into a property.
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JUST SHOW ME THE HOUSE!!
Starting August 17th, NO REALTORยฎ will be able to unlock a door without you first signing the agreement๐คฏThis will be non-negotiable for any person with a REALTORยฎ designation.
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WaitโฆWHAT DO I HAVE TO SIGN?
The agreement between buyer and REALTORยฎ is a Buyers Representation Agreement, the contract between you and that REALTORยฎ stating you will be using them to buy a home and breaking 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. Whatever compensation on this agreement is the MAXIMUM compensation your broker/agent can receive out of the transaction.
FACT: Listing Agreements dictate whether or not a seller is authorizing their listing agent to disclose whether or not they are willing to consider concessions and if so those concessions may be the same or less than the buyer representation agreement amount or seller may choose to not offer a buyers agent compensation/ buyer concession at all. TAKE NOTE: This is all disclosed and negotiated on a property by property basis and will very likely be determined by the actual offers received.
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I HAVE TO PAY COMPENSATION?
Well yesโฆbut actually maybe noโฆ
With the new NAR(National Association of REALTORSยฎ) 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 seller is willing to pay compensation or not. Compensations are always 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.
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HIRE A PROFESSIONAL REALTORยฎ
Selecting a REALTORยฎ when buying a home is an important decision.
August 17th is approaching, a lot of changes will happen behind-the-scenes. 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.
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ALIGNMENT & COMMUNICATION
Now, more so than ever, aligning yourself with a full-time professional REALTORยฎ will be vitally important for the success of your home purchase.
Sellers likely will continue to offer your buyers agent compensation when all is said and done. It will simply now be written in your contracts and offers.
It is even more important for buyers to choose experienced licensed professional agents to represent them to navigate negotiating on your behalf. Listing agents are working on behalf of the sellers best interest, you want someone looking out for yours!
*Shared from another REALTORยฎ... but this explains everything pretty well! Feel free to reach out if you have any other questions๐
