Buying a home is one of the most expensive transactions a person will make. Understanding the home buying process and the impact the National Association of Realtor’s Settlement has on a home buyer is one of the smartest decisions a person can make. In just one week, a new series of mandates will be put in place that will impact the way home buyers do business.
Changes to the Home Buying Process
Beginning on August 17, 2024, home buyers will have to sign an agreement with their Realtor prior to viewing a house in person or virtually.
This action comes after the National Association of Realtors (NAR) agreed to settle a series of lawsuits against them which claimed that NAR policies harmed home sellers, increased commission prices, and inhibited competition. The agreement will include the following components:
” 1. A specific and conspicuous disclosure of the amount or rate of compensation the real estate agent will receive or how this amount will be determined.
2. Compensation that is objective (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended (e.g., cannot be “buyer broker compensation shall be whatever the amount the seller is offering to the buyer”).
3. A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and,
4. A conspicuous statement that broker fees and commissions are fully negotiable and not set by law.” (Source: NAR)
Further considerations of which home buyers should be aware:
- No agreement needs to be signed if buyers are simply talking to the Realtor who is holding an open house or asking about their services.
- Buyer commissions cannot be posted to the MLS.
- Sellers can still offer to pay the Buying agent’s commission.
- Sellers can still offer concessions to the buyer, such as paying closing costs.
The Importance of a Buyer’s Agent During a Real Estate Transaction
Regardless of what changes are required by the NAR, it is always a smart decision for a buyer to use the services of a Buyer’s Agent. A buyer’s agent will negotiate the best price on a home buyer’s behalf, handle issues that may arise during the transaction, be present during inspections, and guide and direct the buyer throughout the process, fill out all paperwork, ensuring timeliness and thoroughness.
Trying to bypass an agent to save money can often lead you to issues that will cost you even more money down the line.
If you are unsure as to how the mandates will affect you as a home buyer, reach out to your preferred Realtor.
Need a Buyer’s Agent? Contact The Gamache Team
The Gamache Team is the perfect blend of experience, energy, and knowledge to offer unmatched service to all our clients! In any phase of real estate, The Gamache Team is prepared to handle it with you. With over 25 years of Tri Valley real estate experience, The Gamache Team is ready to give you the best service possible! Contact us today!
