As a result of a recent lawsuit involving the National Association of Realtors and the Department of Justice, a decision was made that has resulted in a major change in the compensation for a Buyers Agent. In order to keep privacy and fairness regarding what a buyer pays their Agent, that decision is now handled with a new written agreement that buyers need to discuss with their agent. The compensation for a Buyers Agent is no longer handled through the listing agreement.
In the past, and in most transactions, a buyer was offered a portion of what the sellers agreed to pay their Agent. The amount offered to a Buyers Agent for bringing a successful offer to the seller was published in the MLS.
Now, a seller is not required to offer a Buyers Agent any compensation, although a Buyers Agent may ask the seller for compensation as part of Residential Purchase Contract. Everything is now negotiated. The
compensation a Seller will or will not pay and as well as what a Buyer will has agreed to pay their Agent is not part of a purchase agreement unless it is negotiated by both parties.
So when you are getting ready to search for a home, you need to know that, nationwide, the process has changed. The agent you choose will need to discuss with you the new Broker Compensation Agreement, and the terms and amount of compensation, prior to looking at any homes.
As a buyer you can still attend Open Houses without having a signed agreement with any agent. The agent holding the Open House will ask you who represents you or if you have any representation.
They will also ask you to sign an Open House registration so they can record if and how you have representation. Keep in mind that anything a listing agent tells you about the home they are holding open is on behalf of a seller.
If you wish to begin to see homes listed in the Multiple Listing Service, you may call a Listing Agent. They can show you the home on the seller’s behalf and subsequently may want to discuss the possibility of representing you. If that happens you will need to sign a Broker Compensation Agreement as discussed above.
What is certain is that as a Buyer you need to select your Agent so that you have someone you know and trust to be representing your interests. Not only can they help you to find the home you are seeking through the MLS and beyond, but they can be a great resource for financing options and lenders, moving companies, time frame guidance and a myriad of other needs which happen during escrow.
Your agent is going to do their very best to represent your interests. And although this new way of doing business seems complicated, just know that your agent is well versed in keeping it clear and simple for you so that you can focus on what you really seek – a new home!
Real Estate Agents have been dealing with changes in this industry for well over a Century! We continue to evolve, establish new practices, keep up with legal matters, new building codes, City and County regulations, hazards to avoid, zone changes, environmental issues and so much more as we immerse ourselves in your local market in order to do the best job possible for you.
Finding the best Realtor for you can happen simply by asking a friend if they would refer their own agent when they purchased a home, or by reviewing agents online and reading what others have to say about them. It’s much the same as finding an agent to sell your home when the time comes. Communication is key. Ask a lot questions. The best agents love to answer those questions and guide you in this very important process.
Choose wisely!













