In the ever-evolving landscape of real estate, a new rule is reshaping the home-buying process: the requirement for prospective buyers to sign a buyer’s agreement before viewing a property. This significant change, effective July 2024, aims to streamline transactions, protect all parties’ interests, and ensure smoother dealings from start to finish.

Recent developments, including a pivotal lawsuit settled by the National Association of Realtors (NAR), have brought about these changes. Many brokers, including myself, are already adopting these practices to better serve our clients.

What’s Changing?

Since the inception of the MLS, listing agents have published the commission offered to agents representing buyers. Contrary to popular belief, commissions have never been standardized; they’ve varied widely. Now, MLSs across the country will no longer publish buyer agent commissions. This change is intended to prevent agents from steering clients toward higher-commission listings.

Buyer’s Agreement: A New Standard

One of the most impactful changes is that buyers will no longer be able to view properties with an agent without first signing a buyer’s agreement. This agreement enhances transparency and accountability, formalizing the relationship between you and your real estate agent or broker. It clearly defines the expectations and responsibilities of both parties right from the start.

Key Benefits of a Buyer’s Agreement

• Exclusive Representation: The agreement ensures that a specific agent or brokerage firm is dedicated to representing your best interests throughout your home-buying journey. This exclusivity fosters deeper trust and communication, enabling us to better understand your needs, preferences, and financial considerations.
• Clear Scope of Services: The agreement outlines the services provided, from property searches to closing, ensuring you know what to expect and allowing you to hold your agent accountable.
• Commission Clarity: It specifies the commission the agent will earn. While sellers will still pay a commission, the buyer’s agreement will set a minimum commission. If a property offers less than this minimum, the buyer agrees to cover the difference.
• Efficient Use of Resources: By securing your commitment, agents can focus their efforts on clients who are genuinely serious about purchasing, leading to a higher level of service.
• Dispute Prevention: Documenting the terms of our relationship reduces the risk of misunderstandings and legal disputes, protecting both parties.

Finding the Right Agent

Buyer’s agreements have existed for years, but resistance has been common. However, this new rule leaves buyers with no choice but to commit. I encourage you to take the time to find an agent you can trust and work well with. This shift should lead to better relationships and a more effective home-buying process.

Even if you choose to go directly to a listing agent, you’ll need to sign a buyer’s agreement before viewing the property.

Flexible Agreement Options

Buyer agreements can vary in duration, from a single day to view one property to a longer term. To make this transition easier, I’m offering new clients a Five-Day Agreement to give us both a chance to see if we’re a good fit as a team. Effective immediately, I will only show properties to prospective buyers who agree to sign this agreement.

I’m here to help you navigate these changes and make the most of your home-buying experience. Please feel free to reach out with any questions or to discuss how we can work together.