08/07/2024
🚨 BIG CHANGES in The Real Estate Industry, affecting Buyers, Sellers and Agents 🏡PSA TO ALL HOME BUYERS: NEW BUYER REP AGREEMENT REQUIREMENT
On August 17th any REALTOR WILL NOT be legally permitted to show you a home unless you have a signed Buyer Representation Agreement with them.
✅ JUST SHOW ME THE HOUSE!!
Usually it’s not a problem and we can zip over, show it to you and be done, however, starting August 17th NO REALTOR will be able to unlock a door for you without you first signing that agreement 🤯 This will be non negotiable for any person with a Realtor designation.
✅ 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 saying you will be working with her/him to buy a home and breaking down the roles, duties and responsibilities. This form gives transparency around how your Realtor will get compensated and who and how that can be collected. Whatever compensation that is on this agreement is the MAXIMUM compensation your broker/agent can receive out of the transaction.
✅ I HAVE TO PAY COMMISSION?
Well yes…but actually maybe no… 🤔
With the new NAR ruling going into effect, advertising cooperating broker and buyer broker commissions will now be BANNED on the MLS.
Commissions are not set by law, are fully negotiable, and may be paid by the seller, the buyer, the landlord, the tenant, or a third party, or by sharing or splitting the fees and commissions between brokers. The maximum amount of compensation will be spelled out in the buyer broker representation agreement, and also within a Contract to Purchase, where buyers and sellers can negotiate and agree upon, who pays the Buyer Broker Commission and how much.
✅ HIRE A PROFESSIONAL AGENT
Buying a home can be one of the largest financial decisions someone ever makes, so choosing the right Realtor for you is an important decision. So take time to sit down and understand how your Realtor will work for you to help you navigate the path to homeownership.
As the 8/17 date is quickly 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 and will affect Buyers, Sellers, Agents and Negotiations throughout the process. It is important to be educated on the changes and have a real estate professional on your side to help navigate the best options for you.
