So, there’s been a LOT of talk going on lately about the HUGE shakeup in the real estate industry as it pertains to compensation, advertising and marketing (particularly on the MLS).
Look, I am new to the industry having started my career late in 2022, fresh out of college. I enjoyed a stellar first year that exceeded all of my own goals and expectations.
…and then WHAM, out of nowhere comes this new ruling that seems to be really worrying a lot of long-time realtors.
The truth is, this change was inevitable and it was a long time coming. However, like most decisions that come from bureaucrats and politicians (and judges), there are many negatives or cons that will come about due to this ruling.
The greatest change that has many real estate Buyers Agents upset is that we will no longer be able to post a buyer’s agent commission on the MLS any longer. Also, another change is that a buyer rep (buyer agreement contract) is going to be required before we can show any houses to you as real estate agents. (I’ll get back to this point in a moment…but first:)
Why is This Important? Can’t I Just Contact the Seller or Seller Agent Myself?
The short answer is “yes”, however, the Seller Agent represents the seller or homeowner in every way. In fact, most listing / seller agents won’t act as a Buyers agent on a listing they hold. They will often refer an interested buyer to another Buyer Agent to ensure that both parties are represented well. Purchasing a home is easily the largest decision and purchase you will make in your lifetime and going into the process without someone WHOLLY representing your best interests is simply not wise.
Think about it this way: Would you go into court and allow the other person’s attorney (agent) to represent both his or her client AND you? Of course not. You need someone who is advocating in your best interest.
A good buyer’s agent has the experience to ensure that you don’t end up with a home that will cost significantly more than you expect.
A Real World Example:
One example would be to imagine you found a nice home for sale online. The seller and listing agent might share an inspection report that showed “some previous flooding” or perhaps some floors that are not perfectly level. In that report, they might share a contractor’s estimate on costs to repair things. Let’s say you asked the sellers agent what he or she thought about the estimates. The Seller Agent WORKS FOR THE SELLER and may not actually know anything more than what was shared in the listing. As a Buyers Agent I would suggest that we get our own inspection done, by someone who has YOUR best interests in mind. We can use that information to negotiate the best price for you.
Most sellers agent (listing agents) actually will tell you that the hardest working agent in the buy/sell process IS the Buyer’s Agent. We represent the person investing their money to purchase a new home and we do the research; make several showings and discover what you want in a new home. We handle all of the legal/offer paperwork and we’re with you every step of the way.
The NAR Ruling is Not Even in the Best Interest of Sellers
For decades now, when you list your home for sale, a listing agent places it on the MLS so that your home will be worked (shown) by hundreds, if not thousands of agents in the area. With this new ruling requiring buyer’s agents to get an agreement signed BEFORE they can even show a property, you have to understand that fewer agents will be showing your property for sale.
Logically, if your home is only being shown once in a while by the seller’s agent – homes will stay on the market for a much longer, extended period of time. Getting your home shown by dozens or even thousands of buyer’s agents is what sells most homes.
Closing Thoughts
In the dynamic landscape of real estate transactions, recent changes have stirred discussions about the role of buyer’s agents. The National Association of Realtors (NAR) ruling, which introduced a shift in the traditional compensation structure, has left some questioning the necessity of buyer’s agents in the purchase of a new home. However, despite this ruling, there are compelling reasons why people should continue to engage the services of a buyer’s agent when navigating the complex process of buying a home.
Firstly, buyer’s agents serve as invaluable advocates for homebuyers. In a real estate transaction, conflicts of interest are inherent, especially when the listing agent represents both the seller and the buyer. Buyer’s agents, on the other hand, are solely dedicated to the buyer’s best interests. They provide expert guidance, negotiate on behalf of the buyer, and ensure that their client’s needs and preferences are prioritized throughout the transaction.
Moreover, buyer’s agents offer extensive market knowledge and expertise. They possess insights into local market trends, property values, and neighborhood dynamics, which are crucial for making informed decisions. By leveraging their expertise, buyer’s agents help buyers identify suitable properties, assess their value, and navigate the complexities of the purchasing process with confidence.
One of the most significant advantages of working with a buyer’s agent is their ability to streamline the home-buying process. Searching for a new home can be overwhelming, especially for first-time buyers or those unfamiliar with the local market. Buyer’s agents simplify this process by conducting thorough property searches, scheduling viewings, and guiding buyers through each stage of the transaction. This not only saves time and effort but also reduces stress and uncertainty for the buyer.
Furthermore, buyer’s agents are skilled negotiators who can secure favorable terms and conditions for their clients. Whether it’s negotiating the purchase price, contingencies, or repairs, buyer’s agents advocate for their clients’ interests and strive to achieve the best possible outcome. In a competitive market, having a seasoned negotiator on your side can make a significant difference in the success of your home purchase.
Despite the NAR ruling, which allows buyers to negotiate the commission rebate with their agent, the value proposition of buyer’s agents remains strong. While some may argue that this ruling empowers buyers to negotiate better deals, the reality is that navigating the intricacies of real estate transactions requires specialized knowledge and experience. Buyer’s agents provide much more than just commission rebates; they offer comprehensive support and guidance that extends far beyond the scope of financial incentives.
Moreover, buyer’s agents play a crucial role in protecting buyers’ interests and ensuring a smooth closing process. From reviewing contracts and disclosures to coordinating inspections and appraisals, buyer’s agents meticulously oversee every aspect of the transaction to mitigate risks and prevent potential pitfalls. Their attention to detail and proactive approach help buyers avoid costly mistakes and navigate potential challenges with confidence.
Additionally, buyer’s agents provide invaluable support and guidance throughout the entire home-buying journey. From the initial consultation to the closing table, they serve as trusted advisors who prioritize their clients’ needs and objectives above all else. Whether it’s answering questions, providing market updates, or offering referrals to other industry professionals, buyer’s agents are committed to delivering exceptional service and support every step of the way.
While the recent NAR ruling has sparked debates about the role of buyer’s agents in real estate transactions, their value proposition remains undeniable.
If you’re interested in purchasing your dream home here in the High Country, click here and tell me a little about your “must haves” and I will get to work culling through the local MLS inventory.
If you are looking to list your home or property, click here and provide with just a bit of intel and I will be in touch.