Starting today, new regulations from the National Association of Realtors (NAR) are in effect, bringing significant changes to how real estate transactions are conducted. If you’re a home buyer, it’s essential to understand these updates and how they impact your buying process.

Key Points for Buyers:

  1. Understanding Buyer Agent Commissions:
    • There are multiple ways a buyer agent’s commission can be paid, such as through a seller-negotiated offer of compensation, a seller concession, or directly by the buyer.
    • The recent NAR settlement does not eliminate the seller’s ability to offer compensation to the buyer’s agent.
  2. Negotiating Commission Payment:
    • The method of paying the buyer agent’s commission is negotiable. Your agent will work with the listing agent to determine the best approach for your situation.
  3. Documentation of Commission:
    • The commission terms will be clearly outlined and agreed upon in a Buyer Representation Agreement.
  4. **Executing a Buyer Representation Agreement Before Showing Properties:
    • Before touring properties, it is crucial to sign a Buyer Representation Agreement. This document not only outlines the commission structure but also ensures that your agent is committed to protecting your interests throughout the transaction.
  5. Your Agent’s Role:
    • In these changing times, having a buyer’s agent is more valuable than ever. They will guide you through the complexities of a real estate transaction, ensuring your interests are protected and helping you reach a successful closing.

Important Note: The NAR settlement emphasizes transparency in the disclosure of commission rates. The amount or rate of compensation must be clearly disclosed, not open-ended, and agreed upon in advance. Broker fees and commissions are not set by law and are fully negotiable.

I have uploaded a quick info sheet for Buyers: Buyer Q/A

Feel free to reach out if you have any questions or need guidance. We’re here to help you navigate these new waters and find your dream home.
Stay tuned for tomorrow’s post where we will discuss how these changes affect sellers.