Do you need to sign with a Realtor just to see a house?
In case you don’t know the real estate world was flipped on its head recently a lawsuit against the National Association of Realtors challenging how buyers agents get paid and it’s leaving a lot of people confused. Here’s the short version a Court ruled recently that the current structure of buyers agents commissions was illegal and needed to change. Now Buyer agent commissions are fully negotiable and fully disclosed, however new regulations require that every interaction between a prospective buyer and an agent have to have a disclosure signed or an agency agreement in place with an agreement for compensation before you can even view a property, So this is why if you’ve gone out to look at homes recently, every agent you talk to is asking you to sign something.
So should you sign a disclosure or agency agreement the next time you go to look at a property or enter an open house ?
In my opinion, Yes it’s a good idea because all of these new requirements have been put in place to protect you as a consumers and there are three key reasons why:
1. The required buyer agency agreement ensures that homebuyers have a clear understanding of the relationship with their realtor. It explicitly details the terms of the engagement, including how long the relationship will last, what services the realtor will provide, and how they will be compensated. This transparency reduces the risk of misunderstandings and helps buyers feel more confident in their decisions.
2. With the agents duties clearly spelled out, homebuyers can be certain that their realtor is exclusively on their side and legally obligated to act in their best interests. The agreement outlines the fiduciary duties the realtor owes to the buyer, such as loyalty, confidentiality, and full disclosure, which can provide peace of mind and ensure that the buyer’s interests are prioritized by their agent throughout the entire home-buying process.
3. The new Buyer agreement can help prevent potential conflicts of interest, especially in dual agency situations. By specifying who the agent is exclusively representing buyers can avoid situations where realtors might be trying to represent both sides and instead focus on negotiating solely for the buyer to get the best deal possible, leading to a more ethical and buyer-focused transaction.
I know this topic can be a little confusing, so don’t hesitate to call or email me if you have any questions. and If you are considering making a move, request a free no obligation strategy session so we can help you map your next move. Until we talk, we will be here ready to help YOU create a better life through real estate!
