If you’re working with a REALTOR® to buy a home, you’re in trusted hands. But as of August 17, 2024, a new requirement has been introduced across much of the U.S.: the written buyer agreement. This contract outlines the relationship between you and your real estate professional, ensuring that expectations are clear and services are defined. So, what exactly is a written buyer agreement, and how does it impact you as a homebuyer? Let’s break it down and explore what this new requirement means for your home-buying journey.
What’s a Written Buyer Agreement, Anyway?
A written buyer agreement is simply a contract between you and your chosen real estate professional. It lays out the services they’ll provide and how they’ll be compensated for those services. Think of it as setting the stage for a clear, mutually beneficial relationship.
Why Am I Being Asked to Sign One Now?
Great question! This nationwide requirement came into play as part of a proposed settlement from the National Association of REALTORS® related to broker commissions. So, as of August 17, 2024, many real estate professionals will need to have these agreements in place.
Are These Agreements New?
Depends on where you are. Some states have required these agreements for years, while others haven’t. So, even if you’ve never encountered one before, know that it’s becoming the new norm for many agents across the country.
Can We Negotiate? Absolutely!
These agreements aren’t one-size-fits-all. You should feel empowered to negotiate any part of it – services, length of the agreement, compensation terms – whatever makes you feel comfortable. Remember, compensation isn’t set by law; it’s all negotiable. The key is to ensure that the agreement clearly outlines what you’ve discussed and agreed upon with your agent.
What’s in It for Me?
Clarity! These agreements lay everything out in black and white – what you expect from your real estate professional and what they’ll be paid. This upfront transparency helps prevent any surprises or confusion down the road, setting the tone for a smooth partnership.
When Do I Need to Sign?
You’ll need to sign a written buyer agreement before you “tour” a home with your agent, whether in-person or virtually. But if you’re just browsing at an open house or inquiring about an agent’s services, there’s no need to sign anything yet.
Does This Mean I’m Paying My Agent Out of Pocket?
Not necessarily. While your agreement will outline who pays whom, you can always negotiate for the seller to cover your agent’s fees. It’s all part of the negotiation process!
Does This Lock Me Into a Specific Type of Relationship?
Nope! You can decide on any type of business relationship with your agent that’s allowed by your state’s laws. So, you’ve got flexibility here.
Can I Change or Exit an Agreement?
Yes, you can! If both you and your agent agree, you can adjust the terms or even exit the agreement altogether. Just make sure to review the agreement for any conditions that apply and have an open conversation with your real estate professional.
A written buyer agreement may be new to some, but it’s designed to protect both homebuyers and real estate professionals by creating a transparent and structured relationship. With the flexibility to negotiate terms and the assurance that you’re receiving top-notch service from your REALTOR®, these agreements pave the way for smoother transactions. As you navigate the home-buying process, don’t hesitate to discuss the terms with your real estate professional and ensure that the agreement reflects your needs. Ready to take the next step? Make sure you’re fully informed before signing, and enjoy the peace of mind that comes with clarity and trust in your partnership.