Recent changes that went into effect following the National Association of REALTORS®’ (NAR) proposed settlement* have impacted how agents work with buyers. While some things have changed, many core principles of buyer representation haven’t.
What’s changed:
- Mandatory written buyer agreements. One of the most significant changes is the requirement for written buyer agreements to be signed before showing any properties. While NAR has long advocated for the use of buyer agreements, this change makes it mandatory. Agreements formalize the agent/buyer relationship and help ensure both parties clearly understand their obligations and compensation.
- Compensation transparency and negotiability. Although broker compensation was negotiable prior to the settlement, agents must now disclose their fee upfront and explicitly communicate that these fees are negotiable. This change empowers buyers to engage in open discussions about compensation, ensuring they fully understand the financial aspects of their transaction and can negotiate terms that align with their needs.
- Removal of offers of compensation from MLS listings. A major industry shift is the removal of compensation offers from MLS listings. Importantly, the settlement does not prevent buyer agents from accepting cooperative compensation if the offer is made off an MLS and with approval from the seller.
What’s stayed the same:
- The need for buyer representation. Despite the recent changes, the fundamental need for strong buyer representation remains. Navigating the complexities of a real estate transaction requires expertise, and a dedicated buyer’s agent ensures that their client’s best interests are protected.
- Understanding buyer’s needs. A thorough understanding of a buyer’s needs, wants and budget continues to be a cornerstone of effective buyer representation. By identifying what truly matters to the buyer, agents can present properties that align with the buyer’s preferences.
- Mastery of local market trends. Top buyer agents continue to differentiate themselves by their in-depth knowledge of local market trends. This allows them to set realistic expectations for buyers and negotiate the best possible deal.
- Nurturing relationships with other agents. Strong relationships with fellow agents can streamline negotiations, facilitate discussions around key terms and ultimately enhance the buyer’s experience and the success of the transaction.
- Commitment to lifelong client relationships. Exceptional agents don’t just aim to close a single deal—they strive to build relationships that last a lifetime. To enhance your buyer representative skills, register for the Accredited Buyer’s Representative (ABR®) designation course—available at no cost until the end of 2024. Learn more at become.abr.realtor and stay updated on the latest industry changes by visiting facts.realtor.
*A hearing on the final approval of the settlement is on Nov. 26.
For more information, visit https://crd.realtor/.
