As a result of the recent lawsuit in the national news, NAR (National Association of Realtors) is asking for a “new” rule that would require real estate agents to enter into a WRITTEN AGREEMENT WITH THEIR BUYERS. This agreement will help consumers understand exactly what services and value will be provided, and for how much. I’ve been an agent in Denver helping people purchase homes since 2005 and we’ve always had a Buyer Agency Agreement in place with clients before making any serious headway, so this is nothing new for us…
Things to Keep in Mind if You’re BUYING a House…
The way buyers’ agents have been paid is a result of originally trying to protect buyers decades ago. Years ago, buyers didn’t have an agent dedicated to representing their interests, and were often unaware that the seller’s agent didn’t actually represent their interests as well. So rules and laws were passed to change that, and listing agents were compelled to offer buyers agents a percentage of the commission if they represented a buyer on a house they were listing. This gave buyers more choice in who represented them, and the ability to compensate their agent without having to pay out of pocket. So, for many buyers, this isn’t that great of a change for you unless you cherish the idea of representing yourself and figuring out how to do everything that needs to get done, or just trusting that the seller’s agent will be able to truly represent your best interests as well as the seller.
You will now have to choose a buyer’s agent and sign an agreement with them. This has always been an option, and it could be argued that it should always have been required, but most buyers’ agents didn’t want to seem too pushy or aggressive, so they never asked for one. Now you’ll need to sign a contract to work with them.
Don’t expect agents to be willing or able to work for a much lower commission than they’ve been working for in the past. According to recent data from the National Association of REALTORS®, the average agent earns between $44,951 and $58,528. And they work long and hard to even earn that much. There is rarely a day off, let alone a vacation, and they easily work more than 40 hours per week. Will you be able to find an agent who will work for lower rates? Perhaps. But as is the case in any industry, sometimes going with the lowest cost option ends up costing you more in the end.
While you may expect sellers to drop their price because they don’t have to pay a buyers’ agent, don’t be surprised if they dig in their heels and expect to get as much or more than similar houses have recently sold for. They will still be basing the market value of their house off of data that had buyer agent commissions factored in.
If you go it alone, go in knowing that finding the right house, understanding market values, negotiating the best deals, and handling everything involved throughout the process from contract to closing isn’t as easy as it may sound. There is more to buying a house than just finding it online, making an offer, and then going to a closing. You will have to do the work your agent would have done, and know what needs to be done in the first place. The sellers’ agent won’t be doing the work of the non-existent buyers’ agent.
Commentaires