Buying a home in Ocean Hills is one of the largest financial transactions most seniors will ever undertake. Buyer’s agents, like Gary Harmon, who are REALTORS® are a trusted source of advice and stand ready to help you navigate your homebuying journey and make the choices that work best for you. NAR’s recent settlement has led to several changes that benefit Ocean Hills homebuyers, and we wanted to clearly lay them out for you.
Here is what the settlement means for homebuyers everywhere in the United States:
- You will sign a written agreement with your agent before touring a home. (NO WRITTEN AGREEMENT, NO TOUR.) Since August 17, 2024, an agent cannot show you a home without a Buyer Representation and Broker Compensation Agreement.
- Before signing this agreement, you should ensure it reflects the terms you have negotiated with your agent and that you understand exactly what services and value will be provided, and for how much.
- The buyer representation agreement must include four components concerning compensation:
- A specific and conspicuous disclosure of the amount or rate of compensation the real estate agent will receive or how this amount will be determined.
- Compensation that is objective (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended (e.g., cannot be “buyer broker compensation shall be whatever the amount the seller is offering to the buyer”).
- A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and,
- A conspicuous statement that broker fees and commissions are fully negotiable and not set by law.
- Written agreements apply to both in-person and live virtual Ocean Hills home tours.
- You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services.
- You may ask the seller, when you write your purchase offer, to pay for your buyer broker’s commission. This practice is permitted but the offer cannot be shared on a Multiple Listing Service (MLS)— MLSs are local marketplaces used by both buyer brokers and listing brokers to share information about properties for sale.
- You can still accept concessions from the seller, such as offers to pay your closing costs.
These practice changes went into effect August 17 and changes the way real estate is done everywhere in the US.
Please contact Gary to discuss these changes and to arrange your tour of Ocean Hills homes.
