Big industry-wide changes are here!
In the last few months, I have attended countless trainings and had many conversations with agents and brokers around the County, trying to understand the industry changes expected to hit later this month.
The National Association of Realtors (NAR) settlement adjusts how the commission to a buyer’s agent is structured. Historically, this was included in the MLS as an offer of compensation to the buyers agent. Once the ruling takes affect, compensation to the buyers’s agent will not be detailed in the listing agreement or the MLS. Buyers will have to ask for their agents’ compensation to be paid by the seller in their offer.
Another huge change is the buyer-broker agreement. We have always had some version of this form, but it will now be required to see homes.
What are the benefits of having a buyer-broker agreement?
As a result of the NAR settlement, all REALTORS® are required (effective August 17, 2024) to have a written agency relationship prior to viewing and entering homes.
Much like interviewing agents to sell your home, it is important, and now necessary, to interview agents and hire the right agent. Once you select an agent, you will sign a document that clearly establishes the relationship between you and your REALTOR®.
What does this mean for you as a buyer?
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It establishes a formal relationship and commitment between the buyer and the agent, ensuring the agent is dedicated to finding the best property for the buyer.
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It confirms the buyer has professional representation, protecting their interests during negotiations and transactions.
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Buyers benefit from the agent's expertise, market knowledge, and negotiation skills.
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Agents often have access to a wider range of listings, including off-market properties, giving buyers more options.
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The agreement outlines the services the broker will provide and defining clear expectations.
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Agents are obligated to maintain confidentiality and loyalty to their clients, protecting the buyer’s information and interests.