So you've decided to start looking at a new home (or lot). You've searched online and started the process by contacting a REALTOR® to assist you and schedule the showing... You're excited to finally view the property and then bam. There it is. A legal agreement thrown at you before even stepping foot in the home. Here’s why.
Buyer Agreements have been around for a long time but haven’t always been used. In the past, many of us just included the Exclusive Right to Represent form as part of the contract package when the buyer decided to make an offer. As of August 17, 2024, the National Association of Realtors requires that this form be completed before a REALTOR® shows a client a property. That's right. Before you enter the home. Any REALTOR® "working with a client" must discuss and agree on terms before services are provided. This new requirement for the Buyer Agreement is part of NAR’s settlement terms in result of the recent lawsuits (that have been allllll over the news).
Our job as REALTORS® is to provide our buyers and sellers with services that assist them through the process of buying or selling real estate. This agreement not only provides clarity and transparency in regards to the services the agent will provide but also, how they will be compensated.
Let’s dig a little deeper...
...Services
As a buyer of potentially one (maybe the only) of the largest investments you will make in your lifetime, you should have a clear understanding of the services your agent will assist you with. This is not a situation that has any room for confusion or uncertainty. The Buyer Agreement allows you to learn what your REALTOR® will do for you as you navigate this journey.
Here are just a few of the services that could possibly be offered to you:
Search for and identify potential properties
Schedule showings
Meet you at the property and tour the home with you
Provide current market analysis & comparables
Assist with strategies for making your offer appealing
Complete and submit contracts, addendums, etc.
Help with negotiations on behalf of the buyer
Schedule inspections
Meet with inspectors
Negotiate repair requests
Submit documents to closing agent
Review closing documents
This list could continue on...
...Fees & Compensation
Discussing the fees and compensation associated with the services listed above set the stage for an open and honest relationship with your REALTOR® from the start.
As these new requirements are implemented, you as the consumer may see that different agents provide different services for different fees. They may have a flat rate fee or an a la carte system. Many will stick with the percentage of sale price commission. No matter the situation, be aware of your options and find an agent that you feel comfortable working with. Keep in mind... REALTORS® are typically only paid by commission or the fees discussed on the agreement. There's no salary or number set in stone that we make each week or month or year so we have to be disciplined with the time provided to our clients based on the terms agreed upon.
Sometimes folks have a hard time with any kind of change but when trust and transparency are the main goals of something, how could that be so wrong?? Even though the procedure is being updated for this agreement, the services and expectations of your REALTOR® remain the same. Take the time to ask questions and understand the terms of your Buyer Agreement so you are able to feel confident in your decisions moving forward.
