Something New for Home Buyers (That Might Be a Little Uncomfortable)

In today’s video, we’re looking at a significant change in the real estate world. This change is just a few weeks old now regarding the real estate commission structure changes. I bring this up because it affects all the buyers because you are going to need this new form.

This conversation is the result of the big lawsuit that involved the National Association of Realtors. Now, you have to have an agreement with your buyer’s agent. In the past, you had a chance to maybe look at a few houses and build some trust before signing an agreement with a buyer’s agent. Now, things have changed: before a buyer’s agent can do anything that would look like selling a house to you, the agent must have a specific signed agreement with you.

This agreement outlines several things:

• How long you are going to be represented
• Whether it is an exclusive agreement
• How much compensation will be paid (regardless of whether the seller agrees to pay)

There is a lot going on with this form!

Buyers: What You Need to Know

A few things come to mind:

• The form is brand new to the buyers and the agents as well. Agents aren’t new to the business, and they still offer a ton of value through personalized support.
• It’s expected that the agent will get paid for the services. This form puts the conversation about the money at the front of the interactions instead of having the conversation come up in the middle or at the end of the process.

I think the flow of this is interesting and we’ll keep an eye on it. I do think that it is going to be one of those documents that will be normal going forward, and people will settle into it.

If you are a buyer, this video is your heads-up that you will be asked to sign this form very early in the conversation with your buyer’s agent. The form needs to be in hand before you do almost anything with a buyer’s agent now. So, keep an eye out for the form and know that it’s coming.

Need Help With Your Home Purchase?

I’m sharing this information so that you aren’t surprised by the form when an agent asks you to sign it. Also, feel free to reach out to me if you need a referral to find a buyer’s agent. Make sure to find an awesome agent who will fully represent you so that you feel good about signing the form.

Also, my team is always here to help you get approved for the financing you need for your home purchase. Contact me anytime!