Today, I’m reminding everybody that the National Association of Realtors Settlement has gone into effect and how it is affecting buyers, agents, and sellers.
With the new rules now in effect, we can no longer include any offers of compensation to the buyer’s agent for an acceptable offer in the MLS.
This means that the buyer agent is required to have their buyer sign a Buyer Agency Agreement prior to showing them any homes, and address the three Ws:
WHAT they’re going to be paid. How much?
WHEN they’re going to be paid. At closing or prior?
WHO is going to pay them. Buyer or Seller?
It is CRITICAL for Buyer Agents to get this Agreement signed prior to showing houses. There are hefty fines if you do not, and a potential of losing access to the MLS.
Buyers, do your due diligence! Select an agent that is going to work on your behalf. You need a full-time, professional, experienced agent.
Most buyers that are getting a home loan do not have the additional funds to pay real estate fees ON TOP OF the down payment + closing costs. You cannot finance the real estate fee as part of your closing costs with the loan. You may have to work out with your agent that you can only look at homes where the seller is willing to pay the buyer agent fee on your behalf.
Sellers can still pay that buyer agent fee, it just cannot be indicated in the system WHAT they’re willing to pay.
Now, a buyer agent must reach out to the listing agent to ask if the seller is willing to pay the fee with an acceptable offer. And the listing agents are discussing with their sellers, at the time of the listing appointment, how much to budget for the buyer agent’s commission in their real estate fees. Budgeting for this will benefit the seller in the long run.
A Buyer Agent does a lot for a seller up-front. They’re making sure the buyer is prequalified, and ready to buy NOW, not some time in the future. A seller does not want an unrepresented buyer in their house without a licensed professional there with them.
Buyers, BE SELECTIVE of your agent. Choose someone you trust & will work hard for you.
Buyer Agents, get that Agency Agreement signed PRIOR to showing!
If you’re thinking about buying or selling, give us a call! My team and I are on standby 7 days a week, ready to help you take the smoother road to sold.