Real estate laws are shifting, and buyers need to be aware of the changes that could affect their homebuying experience. Thanks to the recent settlement involving the National Association of Realtors (NAR), key aspects of how agents and buyers interact are evolving. For buyers, this means more control and transparency, but it also comes with new responsibilities.
Mandatory Written Buyer Agreements
Up until now, buyers could work with real estate agents based on verbal agreements or handshake deals. The new rules put an end to that. Starting in mid-2024, agents must have a formal, written agreement before they even show a single property.
This is a big deal for buyers. It means that before you set foot in a home, both you and your agent will be on the same page about what services they’re providing and how they’ll be compensated. You’ll know exactly what to expect from your agent, and there won’t be any surprises about fees or services down the line.
Negotiating Compensation
The settlement also shakes up how agents get paid. In the past, most buyers didn’t have to think much about how their agent was compensated. The MLS (Multiple Listing Service) often handled it behind the scenes, with sellers splitting commissions between the listing agent and the buyer’s agent. Those days are over.
Now, buyers will need to negotiate the agent’s compensation directly. This might sound like a hassle, but it’s really about making sure buyers understand what they’re paying for. It’s also a chance to find a compensation structure that works best for you.
Agents might charge a flat fee, a percentage of the purchase price, or even an hourly rate for their services. This can vary based on the complexity of the transaction and the level of service you need. But whatever the arrangement, it has to be clearly outlined in a written agreement so there’s no confusion later on.
For buyers, this could actually open up more options. You’ll have the freedom to shop around and find an agent whose fees align with your budget and expectations. It’s about paying for value and getting exactly what you need from your agent, not just accepting whatever fee structure is in place.
More Transparency, Fewer Conflicts of Interest
Take advantage of the new system to find an agent who fits your needs and budget. The days of blindly following agents around are over. Now, you have the power to negotiate terms that work for you—and that’s a good thing.
This is a win for buyers. It gives you confidence that your agent is working for you, not for a bigger commission. And when you know upfront how your agent is getting paid, it eliminates the kind of behind-the-scenes maneuvering that can sometimes leave buyers feeling manipulated.
Real estate transactions have never been simple; that’s where Spectrum Title Services, LLC can help. We’ve been in this business long enough to know how to see through any manipulative tactics and ensure that you’re always getting a fair deal. If you want to feel confident and secure in your next real estate transaction, give us a call at 954-727-3347. We’ll help you make sure your interests are protected.