If you’re in the market to buy a home, you might have heard about the recent proposed settlement involving the National Association of Realtors (NAR). This agreement brings forth some important changes that could affect your home-buying journey.
One significant shift is that now both buyers and sellers have the opportunity to negotiate the commission for the buyer’s agent on a per-offer basis. While previously, sellers typically covered this cost, the new arrangement might require buyers to pay their agent’s commission directly. So as a buyer, you may need to factor in the cost of your agent’s commission when budgeting for your home purchase. This change underscores the importance of discussing compensation arrangements with your agent upfront to avoid any surprises later on.
Another key change is the requirement for real estate agents working with buyers to have a written agreement in place before showing homes. This agreement outlines the services provided by the agent and any associated costs, including the commission. So, before you start viewing properties with your agent, they will likely ask you to sign a written agreement. This document ensures transparency and clarity regarding the services your agent will provide and the compensation they will receive.
From a legal standpoint, home buyers must understand the implications of the NAR lawsuit settlement. The changes regarding buyers’ agent compensation may alter the traditional arrangement where sellers typically covered this cost. By understanding these changes and communicating effectively, home buyers can navigate the process with confidence.