Buyers Agency Agreement? What does that even mean?

In the next few weeks you are going to see ALOT of new information regarding the real estate industry as well as some new guidelines all agents (Nationwide) will have to adhere to. With that being said, lets get to it! 

First and foremost as I’m sure you’ve heard from months prior, NAR (national association of realtors) presented whats called a “Buyers Agency Agreement” for all buyers in the real estate market. This is a 5 page document (excessive right?) That essentially states what our business relationship is and how we work together. Just like your dentist, doctor, attorney etc you sign an agreement stating what services are provided & clear expectations. This helps solidify the commitment between clients and agents. 

It will need to be signed before you see another home. Legally any Realtor showing a home without a signed buyers agency agreement can be fined & or worse. And, listen as much as I enjoy YOU, I don’t want my license being taken away nor my reputation as a respected Broker smushed to pieces.

This document ensures that you receive the highest level of service I can possibly provide. Additionally, it’s important to know that I am not compensated for my time working with you until you close on a transaction. (Just like when you hire an attorney to represent you) Buying a home is potentially the BIGGEST purchase you will make in your lifetime, wouldn’t you want to make sure you’re protected and represented properly?

With that being said I’m sure you have questions. How much Ash? When do I pay you? 

*don’t think too far into it. 99% of sellers will still be paying a buyers agent commission so for you, that means you don’t ever pay me a dime. What this document solidifies is IF by some chance, the seller isn’t offering payment to a buyers agent in any form (sellers concessions are allowed to be used) that YOU as the buyer will make up the difference. We as a team, will have already prepared this document so you’ll know ahead of time if and when you’d have to pay. 

I know this may come as a shock, but if you think about it, I work for you right? I don’t work for the sellers, so why would they be the ones to pay me? Just because it’s always been like that? 

In Europe and other countries, the payment has always been split. Buyers agents are paid by the buyers & sellers agents are paid by the sellers. Makes sense right? 

Hopefully this explains a little bit about whats going on in the real estate industry & can help ease your worries. Like I said, most sellers are still going to offer some form of compensation to both sides, this document is to make sure buyers agents are paid for their hard work. 

If at any point, you have questions about this or anything else, please always know you can email me anytime at njhomesgirl.com, I would love to hear from you!