Navigating the New Real Estate Changes: A Guide for Home Buyers and Sellers

The recent NAR settlement has brought about some changes in the real estate landscape. While these changes might seem daunting at first, it’s important to remember that they’re ultimately designed to increase transparency and empower both buyers and sellers. As your Realtor, I feel confident and excited about these national changes, not only because they will help consumers feel more confident, but it’ll help all realtors do what I’ve been doing for years – doing what’s best for you, all the time!

Increased Transparency about Realtor Commissions

It’s important to note that commissions have always been negotiable and were never set by law. However, the new settlement brings increased transparency to the process. This means that Realtors are now required to explain their compensation clearly and upfront, even before you step into the first home on your search.

Previously, commissions were often baked into the sale price, making it difficult for buyers to understand the true cost of the transaction. Now, you’ll have a clearer understanding of how your agent is being compensated, allowing you to make more informed decisions. Keep in mind that as of August 2024, 97% of all sold homes in the MLS paid out a buy-side compensation. This showcases the value in sellers offering some sort of compensation, but making sure that the fee is comfortable to the seller and gets the best value out of the transaction is crucial moving forward. After all, it takes two to tango!

Negotiation Power

For Buyers: When a home is sold, a buyer pays a seller to purchase their property. The seller then uses the proceeds to cover various expenses, including closing and title fees, attorney fees, and their realtor’s fee. In some cases, the seller may also pay the buyer’s agent fee. The settlement empowers buyers to negotiate their agent’s commission directly. This means you have more flexibility to get the best deal possible on your dream home.
For Sellers: This means that your agent must showcase the value in their work when listing your home for sale, marketing it to the masses, and ultimately finding you a solid buyer that will get you exactly what you’re looking for out of selling your home. Knowing that commissions are fully negotiable gives sellers more understanding of where their money is going to get a buyer.

The Buyer Representation Agreement

A new requirement for all Realtors is the Buyer Representation Agreement. This agreement outlines the terms of your relationship with your agent, including their responsibilities and your expectations. It’s a valuable tool for ensuring a smooth and successful home-buying process.

Don’t Worry About Overcommitting

While the Buyer Representation Agreement is required before touring homes, don’t worry about having to overcommit or stress about a legal document. At Coldwell Banker, we offer a variety of Agency Agreements to suit your individual needs. Whether you’re just looking to tour one property or need long-term guidance, we have the right agreement for you.

My Agency Agreement Options

Here are some of the Agency Agreement options available at Coldwell Banker:

(Seller) Exclusive Right to Sell: This agreement grants your agent the exclusive right to represent you in the sale of your property.
(Seller) Exclusive Agency: This agreement grants your agent the exclusive right to represent you, but you can still sell your property yourself.
(Buyer) Exclusive Representation Agreement: This agreement outlines the terms of your relationship with your agent as a buyer and what fee is involved with this service. It is set for a certain period of time, and the fee and timeline is fully negotiable. It also gives you the option to avoid seeing certain homes that do not offer buyer’s agent compensation, at your sole discretion. As your Realtor, I feel confident in my negotiating power to get you the best home at the best value, so I am committed to finding balance on both sides of the closing table.
(Buyer) Showing Agreement: This grants your agent the exclusive right to represent you and show you a particular property. This is the shortest term agreement we have and is great for new buyers who just met their realtor to get to know each other, build rapport, and find the perfect match of a Client/Agent relationship.

Choosing the Right Agreement

I’ll work with you to determine the best Agency Agreement based on your specific needs and goals. We’ll discuss your preferences, timeline, and budget to ensure you’re making an informed decision.

My Commitment to You

As your Realtor, I’m committed to providing you with the highest level of service. I’ll leverage my expertise in market data analysis, negotiation strategies, and relationship building to help you achieve your home-buying goals. I’ll also stay up-to-date on the latest policies and procedures to ensure you’re always informed.

Additionally, I’m proud to offer my buyers money-saving programs through my lender at Guaranteed Rate Affinity. These programs can help you save on your mortgage and make homeownership more affordable.

If you have any questions about the new NAR settlement or are ready to start your home-buying journey, please don’t hesitate to contact me. I’m here to help you every step of the way.

To a Happy Home,

Gina