BOBBY FREEMAN: New National Rules Taking Effect Aug. 15 Changes How Real Estate is Bought and Sold

rule for buyer broker agreements has brought about significant changes

High Interest Rates, High Sales Prices and Now Buyers Might Have To Pay Their Realtor

BREVARD COUNTY, FLORIDA – The new NAR (National Association of Realtors) rule for buyer broker agreements has brought about significant changes in the home buying process.

One of the key aspects of this rule is the requirement for buyers to sign a buyer broker agreement before being able to view homes for sale.

“In the past, buyers could contact any Realtor to see homes at any time. Now, Realtors will need to be formally hired for their services before any homes are first viewed, and buyers could be the ones to pay their buyer’s agent,” said Jennifer McCoy, Broker-Associate with McCoy Freeman Compass. “This is now national law so every Realtor and buyer will be held to this new standard.”

This new process aims to create a more transparent and professional relationship between buyers and their real estate agents. By signing a buyer broker agreement, buyers are essentially formalizing their working relationship with their agent.

This agreement outlines the terms of the arrangement, including the agent’s responsibilities, the duration of the agreement, and any potential compensation.

For buyers, this means that they will need to engage in a more structured approach to their home search. Before being able to view homes, they will need to have a clear understanding of their commitment to their agent and the parameters of their working relationship.

Just like sellers have a listing agreement with Realtors, buyers are advised to interview Realtors and hire based on their qualifications and specific needs.

While this new requirement may initially seem like an additional step in the home buying process, it ultimately serves to benefit both buyers and their agents. By establishing clear expectations and formalizing the working relationship, buyers can expect a higher level of service and commitment from their agent.

Additionally, this process can help buyers feel more secure in the guidance and support provided by their agent throughout the home buying journey.

Overall, the new NAR rule for buyer broker agreements signifies a shift towards greater professionalism and clarity in the real estate industry. Buyers can anticipate a more structured and transparent experience, starting with the signing of the buyer broker agreement before embarking on their home buying journey.

BUYER REPRESENTATION: FACT VS. FICTION

■ FICTION: Buyer’s agents can tour listings with buyers who have not signed Buyer Representation Agreements.
■ FACT: As of 8/17 buyer’s agents are required to have a signed Buyer Representation Agreement before they are permitted to tour properties with potential clients. This is not a choice.

■ FICTION: Only Compass is requiring buyers to sign a Buyer Representation Agreement before touring properties with a real estate agent.
■ FACT: Every buyer’s agent at every brokerage is required to have a signed Buyer Representation Agreement before touring any properties with potential clients.

■ FICTION: Buyers won’t want to work with an agent if they have to sign a Buyer Representation Agreement.
■ FACT: 89% of homebuyers use a real estate agent to purchase their home, and 91% agree it would be very stressful to navigate the home buying process without one. To access the value of a professional buyer’s agent, a Buyer Representation Agreement must be in place, formalizing the contract between the agent and the buyer.

■ FICTION: All listings are available online, so working with a buyer’s agent isn’t necessary.
■ FACT: Compass agents have access to Private Exclusives, off-market listings that sellers may not want to list publicly. By working with a Compass agent, buyers gain access to exclusive inventory before the competition, helping them avoid bidding wars and giving them time to craft the best offer.

■ FICTION: Sellers can no longer offer buyer agent compensation
■ FACT: Sellers can continue to assist buyers in paying their agents by offering compensation as part of an overall marketing strategy to sell the property for the most money the market will bear.

■ FICTION: Sellers no longer need to compensate buyer’s agents
■ FACT: Offering buyer agent compensation or concessions is a choice made by a seller in consultation with their listing agent. The commissions have always been negotiable.

■ FICTION: Sellers are now prohibited from offering buyer’s compensation
■ FACT: Offering a buyer’s agent commission has always been up to the seller. Sellers can continue to offer compensation to buyer’s agents if they believe it will lead to the best outcome for the sale of their property.

ABOUT THE AUTHOR

Bobby Freeman, a lifetime resident of Brevard County, has been a top Realtor in the area for over two decades. In his first year as an agent, Freeman received a Rising Star award from his Brokers. Since then, he has achieved numerous sales awards from some of the largest real estate firms in the world.

Freeman, Jennifer McCoy and Nikki McCoy-Freeman are family owners of the McCoy-Freeman Real Estate Group on Florida’s Space Coast. Together they have more than 40 years of extensive experience in all aspects of the real estate industry, have sold over $420 million and are ranked in the top 1% of all Florida Realtors.

Among McCoy-Freeman Group’s achievements are Certified Luxury Home Marketing Specialist (CLHMS), Certified Distressed Property Experts (CDPE), Accredited Buyer’s Representative (ABR) and voted Best Realtor in Brevard County. The group has been featured in many news publications including CNN Money Magazine, CNNMoney.com, WFTV 9 News, News 13, WKMG News 6, Coastal Condo Living Magazine, Hot Retirement Towns Magazine and SpaceCoastDaily.com.

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