by LochRiviera
Why YSK: As of August 17, 2024, real estate buyers who retain a real estate licensed professional to help them tour homes or find them a house is bound to sign a buyer’s broker agreement. Nevertheless, you are not obligated or should be forced or coerced into signing a buyer’s broker agreement, in order to buy a house. You can always represent yourself and work with your real estate attorney and the exclusive listing agent for the seller. This will save you money.
Signing a buyer’s broker agreement contractually commits you to pay the brokerage representing you. Brokerages typically are demanding a commission for finding you a home. These commissions are costly and typically range from 2% to 3% of the purchase price.
YSK also know that should you decide to sign with a buyer’s broker, then it’s highly important that you’re aware you have the right to negotiate the terms of the contract and payment structure. Payment structure’s can also include a flat fee payout instead of a commission.
Brokerages and their professionals who are stating that should you want to tour a home, find a home, buy a home; then you must be represented and sign a exclusive buyer’s broker agreement. This is in fact misrepresentation of the facts and not legal. You should have all your financial documents prepared and can in fact contact the listing agent.
National Association of Realtors Settlement FAQs: https://www.nar.realtor/the-facts/nar-settlement-faqs
Additional Important YSK for Context: Seller’s listing agent’s are no longer permitted to release how much and if any of the commission they will be co-brokering with the agent representing the buyer. Therefore, buyer’s agents no longer have that information in their local MLS’s (Multiple Listing Service). Since the seller’s listing agent is not required to offer any cooperating broker commission split, buyer’s broker are now required to sign agreements stipulating payment to them from the buyer.