Classes and Education

Commitment to Home Buyers Amid Shifts in the Real Estate Landscape

July 13, 2024
Classes and Education

Commitment to Home Buyers Amid Shifts in the Real Estate Landscape

July 13, 2024
Classes and Education

Commitment to Home Buyers Amid Shifts in the Real Estate Landscape

July 13, 2024
Classes and Education

Commitment to Home Buyers Amid Shifts in the Real Estate Landscape

July 13, 2024

New Real Estate Rules Will Directly Impact Home Buyers

As the real estate landscape continues to evolve, The HomeBuyer Brokerage remains dedicated to serving the unique needs of homebuyers in Washington D.C., Maryland and Virginia. Our press release is below. 

The National Association of Realtors reached a settlement agreement to end litigation brought on behalf of home sellers related to broker commissions. In the settlement terms, NAR denies any wrongdoing in connection with the Multiple Listing Service (MLS) cooperative commission offered on listings.

While admitting to no wrongdoing, NAR will pay $418 million dollars over the next four years. NAR also agreed to revise its commission rules, dropping the cooperative commission, money offered to the buyer's agent, from the listing agreement.

The changes in real estate practices, agreed to in the NAR settlement, begin August 17, 2024.

While it's not clear exactly how this will change the real estate industry, the new rules and regulations will change real estate transactions, altering the dynamics between agents, brokers, and consumers. 

Buyer Broker Agreements

The services of the buyer agent or buyer broker will be outlined in the buyer broker agreement. 

Home buyers will have discussions with buyer agents about agent compensation. 

If you are working with a buyer’s agent, you will enter into a written buyer agency agreement before touring a home. This includes both live and virtual tours.

The agreements will show a specific, not open ended, buyer broker compensation.

The agreement will include language stating broker commissions are not set by law and are negotiable. 

If a buyer agrees to work with a listing agent, dual or designated agency, the buyer broker agreement will define how the service to the buyer is limited 

The buyer broker agreement will include the length of time and termination date. 

Changes in Fees

The buyer broker agreements will show the buyer agent or buyer broker compensation. Payment can come from a seller subsidy, the buyers or a combination of both. Our concern is for home buyers who are financing the transaction. Why should a home buyer, paying earnest money, down payment and closing costs, be required to provide additional funds?  The seller, pays their representation at settlement using the funds provided by the buyer.

Who works for you, the home buyer?

The NAR settlement agreement will bring massive change to the real estate industry. In some cases, home buyers may go directly to listing agents to make an offer on a property. This is dual agency, one agent 'representing' both clients in a transaction. Dual agency occurs when the seller and buyer sign a dual agency agreement. Dual agency means limited service for both the seller and the buyer. The dual agent is not supposed to advise buyer or seller on the sales price, contract details, home inspection or terms in the contract.

Dual agency is the lowest form of representation if you can call it representation at all.
At HomeBuyer Brokerage, we strongly advise against signing a dual agency agreement.
A final note

Traditional real estate agents have different titles depending on the services they provide.

There are real estate brokers and real estate agents. 

Real estate brokers supervise, train and educate real estate agents. In many cases, real estate brokers have their own brokerage. They are responsible for the actions of the real estate agents in their brokerage.

Real estate agents work under the supervision of a broker. They may be members of a team. Let's say there is Team Victoria. The team members could include buyer agents, listing agents, dual agents, designated agents or transactional agents. Depending on the service provided to a client, the real estate agent will use the corresponding title.  

A buyer agent today could be a listing agent tomorrow.

HomeBuyer Brokerage represents home buyers, not properties

We are exclusive buyer agents, members of the National Association of Exclusive Buyer Agents, and only work for home buyers.

Traditional real estate agents work for home sellers and home buyers.

If you have questions about representation in real estate, how to make an offer, what goes into a contract offer or more, email Victoria@homebuyerbrokerage.com

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Thank you for requesting more information...

We value and protect your privacy and will never share your contact information with anyone else.

How can we help?

If the exclusive buyer agents at HomeBuyer Brokerage can assist you in any way, please don't hesitate to contact us at info@homebuyerbrokerage.com.

Commitment to Home Buyers Amid Shifts in the Real Estate Landscape

Commitment to Home Buyers Amid Shifts in the Real Estate Landscape
Commitment to Home Buyers Amid Shifts in the Real Estate Landscape
Commitment to Home Buyers Amid Shifts in the Real Estate Landscape
Commitment to Home Buyers Amid Shifts in the Real Estate Landscape

New Real Estate Rules Will Directly Impact Home Buyers

As the real estate landscape continues to evolve, The HomeBuyer Brokerage remains dedicated to serving the unique needs of homebuyers in Washington D.C., Maryland and Virginia. Our press release is below. 

The National Association of Realtors reached a settlement agreement to end litigation brought on behalf of home sellers related to broker commissions. In the settlement terms, NAR denies any wrongdoing in connection with the Multiple Listing Service (MLS) cooperative commission offered on listings.

While admitting to no wrongdoing, NAR will pay $418 million dollars over the next four years. NAR also agreed to revise its commission rules, dropping the cooperative commission, money offered to the buyer's agent, from the listing agreement.

The changes in real estate practices, agreed to in the NAR settlement, begin August 17, 2024.

While it's not clear exactly how this will change the real estate industry, the new rules and regulations will change real estate transactions, altering the dynamics between agents, brokers, and consumers. 

Buyer Broker Agreements

The services of the buyer agent or buyer broker will be outlined in the buyer broker agreement. 

Home buyers will have discussions with buyer agents about agent compensation. 

If you are working with a buyer’s agent, you will enter into a written buyer agency agreement before touring a home. This includes both live and virtual tours.

The agreements will show a specific, not open ended, buyer broker compensation.

The agreement will include language stating broker commissions are not set by law and are negotiable. 

If a buyer agrees to work with a listing agent, dual or designated agency, the buyer broker agreement will define how the service to the buyer is limited 

The buyer broker agreement will include the length of time and termination date. 

Changes in Fees

The buyer broker agreements will show the buyer agent or buyer broker compensation. Payment can come from a seller subsidy, the buyers or a combination of both. Our concern is for home buyers who are financing the transaction. Why should a home buyer, paying earnest money, down payment and closing costs, be required to provide additional funds?  The seller, pays their representation at settlement using the funds provided by the buyer.

Who works for you, the home buyer?

The NAR settlement agreement will bring massive change to the real estate industry. In some cases, home buyers may go directly to listing agents to make an offer on a property. This is dual agency, one agent 'representing' both clients in a transaction. Dual agency occurs when the seller and buyer sign a dual agency agreement. Dual agency means limited service for both the seller and the buyer. The dual agent is not supposed to advise buyer or seller on the sales price, contract details, home inspection or terms in the contract.

Dual agency is the lowest form of representation if you can call it representation at all.
At HomeBuyer Brokerage, we strongly advise against signing a dual agency agreement.
A final note

Traditional real estate agents have different titles depending on the services they provide.

There are real estate brokers and real estate agents. 

Real estate brokers supervise, train and educate real estate agents. In many cases, real estate brokers have their own brokerage. They are responsible for the actions of the real estate agents in their brokerage.

Real estate agents work under the supervision of a broker. They may be members of a team. Let's say there is Team Victoria. The team members could include buyer agents, listing agents, dual agents, designated agents or transactional agents. Depending on the service provided to a client, the real estate agent will use the corresponding title.  

A buyer agent today could be a listing agent tomorrow.

HomeBuyer Brokerage represents home buyers, not properties

We are exclusive buyer agents, members of the National Association of Exclusive Buyer Agents, and only work for home buyers.

Traditional real estate agents work for home sellers and home buyers.

If you have questions about representation in real estate, how to make an offer, what goes into a contract offer or more, email Victoria@homebuyerbrokerage.com

You may download the PDF by clicking here.
Request More Information

We will not share your information with anyone....

First Name*
Last Name*
Email*
Click here to view content
Oops! Something went wrong while submitting the form.

Thank you for requesting more information...

We value and protect your privacy and will never share your contact information with anyone else.

You may also download the PDF here.

How can we help?

The exclusive buyer agents at HomeBuyer Brokerage specialize in serving home buyers. Please reach out with questions at info@homebuyerbrokerage.com.

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