New Changes Affecting All Home Buyers

---

 I want to share some very important news with you. This news is important if you are thinking about buying a home and ready to start looking at homes.

You may have seen the news headlines about a recent class action lawsuit settlement involving the National Association of Realtors, and several large real estate brokerage franchises. Let me point out upfront, that neither I or my company, Robert Slack Real Estate, were defendants in the lawsuit. 

If you have seen or heard new stories about this lawsuit and the resulting settlement, then you likely have questions about how this could affect you. Especially because many of the headlines were sensationalistic, exaggerated, and often flat out inaccurate.

Since this story has been all over the news, I won’t recap what the lawsuit and settlement entails here. If you would like to know more, simply Google: NAR Settlement, or refer to the National Association of Realtors  (NAR) article: What the NAR Settlement Means for Home Buyers and Sellers

You can also read the National Association of Realtors Consumer Guide: “Why Am I Being Asked To Sign A Written Buyer Agreement?”, which is available below.

Keep in mind, for many years prior to this lawsuit settlement and the resulting rules changes, generally, all home sellers agreed to pay a commission to the listing broker, who then agreed to share part of that commission with the buyer’s broker. And while these changes are still very new, my observation is most home sellers are still offering to pay a commission with the buyer’s broker. So, the impact on you is minimal, but there are still a few new rules and procedures that will affect you. 

I do predict that some home sellers and their brokers will opt to not offer a specified amount of commission upfront. What they are trying to create in doing this is an opportunity to negotiate how much commission a buyer’s brokerage gets when an offer is being negotiated.  

For a copy of the National Association of Realtors (NAR) Consumer Guide: "Why Am I Being Asked To Sign A Written Buyer Agreement?”, click the button below.

1. All homebuyers must sign an agreement BEFORE any Realtor can work with them or show them a home(s).

2. These agreements outline the duties of the buyer and the Realtor and clarifies how the buyer’s Realtor gets compensated. They also clearly state that real estate commissions ARE negotiable. That doesn’t mean that everyone involved…buyers, sellers, and Brokerages are required to accept the result of negotiations. 

3. Most home sellers will still agree to pay a commission with the buyer’s broker, however a few home sellers will opt to not to offer a commission to the buyer’s broker or offer insufficient compensation. 

4. In such a case, since Realtors don’t work for free, if you make an offer on a home, you will need to include a request for a concession from the seller to pay the buyer’s brokerage’s commission. This can be negotiated between the seller and the buyer. In most cases, this is all the commission that is needed. 

5. There are three different types of agreements and you will need to sign one before you can look at any homes. They are:

1. A Pre-Touring Agreement
2.  A Showing Agreement
3. And lastly an Exclusive Buyer Brokerage Agreement

• The first is the least binding of the three. The last one is the most binding of the three agreements in that you are committing to work with my brokerage to buy ANY property in areas specified for a specified period. If you agree to sign that version, you won’t need to sign any such forms with me as long as it is in force. 

7. Click the links above to view blank copies of these agreements. 

8. If you sign an Exclusive Buyer Brokerage Agreement with another Realtor/Brokerage, I cannot show you any homes.

I can send you the appropriate form to sign digitally in advance. Once you sign the agreement, to be fair to other Realtors, make sure you tell any Realtor that contacts you that you have already signed a Brokerage Representation agreement.