Effective nationwide beginning August 17th of 2024,
every Realtor will require you to sign an agreement before showing you homes.
You probably have a lot of questions about that. Trust me, we still do, too. But we will do our best to answer them because at the end of the day, a lot of our job is explaining difficult things to you.
Why do I have to sign something?
Great question. The National Association of Realtors has been in a lawsuit since 2019 that is now being settled. As part of that settlement through the Federal Department of Justice, Realtors in every state need to enter signed, written agreements with their Buyer clients prior to showing them any homes (other than their listings).
What am I signing?
You will be signing a “Buyer Broker Agreement.” The terms of that agreement depend on what you have discussed with your Realtor. This agreement goes over things like the length of time we will be working together, our duties to you as your representative, and how we get paid. All of these terms may vary depending on your situation, your needs, and what you work out with your Realtor.
So, how do you get paid?
Like everything else in real estate, that's negotiable. In the past, the Seller paid their Realtor and then they would pay us for selling you their listing. With this lawsuit settlement comes changes here, too. Now, our pay representing you as a Buyer comes from you. We know you already have down payment and closing costs to budget so we may discuss how our payment might be structured in different scenarios. This is something you and your Realtor will work out at your Buyer Consultation.
What is a buyer consultation?
A Buyer Consultation is an informative meeting between you and your prospective Realtor. This might be in person or even online. They will go over your needs, your wants, and your goals. We might go over big topics like financing, your home search, inspections process and more. You are making a big investment and we want the opportunity to guide you toward your best possible outcome. Best of all, it’s free and there’s no commitment. However, if you are connecting with your Realtor and are ready to go see some houses, with this industry wide change, you will need to sign a Buyer Broker Agreement.