08/13/2024
IMPORTANT! PLEASE READ BELOW!
Many of you may have noticed that things are changing in the real estate industry and there are some new processes in place with regard to buying and selling your home. Change can be scary and those of us in the industry have had months to prepare ourselves for all of this, but if you don't live in this world full time there's a good chance these new procedures may catch you off guard. I first want to say that I truly believe the terms of NAR’s recent settlement include several changes that actually benefit homebuyers and sellers, and wanted to clearly explain them to you.
Here is what the settlement means for homebuyers:
1. You will sign a written agreement with your agent BEFORE touring a home. Any home. Whether it's in person or via a virtual showing with your agent. This agreement can be as simple as a one page form specific to 1 day or 1 property, or it can be a multi-page form that's good for up to 12 months on any property you purchase.
2. Remember - this is a contract. Please make sure to review the terms to verify you are comfortable with what you are signing. If you are meeting with an agent you don't know or haven't worked with in the past, I'd recommend signing a 1 or 2 day form in order to make sure you are comfortable with this individual before committing yourself to a longer term partnership.
3. The buyer agreement must include four main components:
A. A specific and conspicuous disclosure of the agent's fee for helping you purchase a home (what they are charging for their services).
B. Compensation that is objective and clearly stated. This compensation can be a flat overall price, a percentage of the gross sales price, even an hourly rate. The terms are completely negotiable and to be determined by you and your agent. The rate MAY NOT be open-ended. The agent cannot write that they will accept whatever compensation a seller is offering.
C. Once this amount has been determined, an agent MAY NOT accept a higher amount of compensation even if the seller is offering more than what is written into your buyer broker agreement.
D. A conspicuous statement that broker fees and commissions are fully negotiable and not set by law.
4. You DO NOT need a written agreement if you are just speaking to an agent at an open house or asking them about their services. BUT if you ask that agent for information about pricing, comps, writing an offer on your behalf, or any other service that would benefit you as a buyer then you will have to sign one before they can provide those services.
5. The seller may agree to offer compensation to your agent, but that offer cannot be posted on the MLS or any other website that shows properties listed by multiple brokerages (Zillow, Homes, Trulia, etc). A list agent CAN advertise this compensation on their own website, social media, flyers, etc.
6. You can still accept concessions from the seller, such as offers to pay your closing costs. Additionally, you may ask in your offer that the seller pay your buyer's agent fees. This item is just as negotiable as closing costs and can be included in your offer. If a seller declines to pay that fee, you are not obligated to purchase that house. You can opt to pay the fee yourself, or keep looking for another house where the seller is more amenable to these terms. The final decision is always in your hands as the buyer.
More details about these changes and what they mean can be found at facts.realtor.
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If you have ANY questions at all about any of this, reach out to your favorite Verity agent and ask. We'd be happy to meet and go over all of your questions and concerns. We are here to help in any way we can, and this is just another piece of that.
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