understanding buyer agency & what a buyer's agent does

We know your money is important to you. Whether you are a first time home-buyer or a seasoned investor, The Perrone Team is here to work as your buyers agent to negotiate the terms that best protect your hard earned dollars.

It's no secret that today's market poses serious challenges to home buyers. With ever-changing interest rates, fluctuating inventory levels, and evolving buyer agency commission models, you need a team behind you with the proper communication skills, market knowledge  and a large network of lenders, inspectors and other professionals to help you make sound, solid and informed decisions. 

The home buying process involves the largest purchase most people will ever make. It involves both emotional and financial stress. You need a support system like The Perrone Team by your side.

What is a Buyer Broker Agreement and why do you need to sign one?

AI Overview

As of August 17, 2024, the National Association of REALTORS® (NAR) settlement requires home buyers to sign a written agreement with a real estate agent before touring any home. This contract defines services, sets agent compensation (which is fully negotiable), and increases transparency, prohibiting buyer brokers from receiving compensation that exceeds what is listed in the agreement. 

National Association of REALTORS® +2Key Aspects of the NAR Buyer Broker Agreement

• Mandatory Before Tours: You must have a signed agreement before a realtor shows you a home in person or via live virtual tour, or provides services like drafting offers.
• Negotiable Compensation: The agent’s compensation must be explicitly stated (e.g., a flat fee, percentage of price, or hourly rate) and is negotiable, not set by law.
• No "Open-Ended" Fees: Agreements cannot simply state that the agent will receive "whatever the seller offers." It must be an objective amount.
• Seller Concessions: You can negotiate for the seller to pay your agent's fees, but the agreement must account for this, ensuring the total payment does not exceed the agreed amount.
• Transparency & Disclosure: The agreement must clearly state that commissions are not fixed and are negotiable.
• Duration: The agreement's term is negotiable and can cover a single showing, a specific property, or a set timeframe (e.g., 30 days, 6 months). National Association of REALTORS® 

Why This Changed
The 2024 NAR settlement stems from lawsuits aiming to decouple buyer agent compensation from the Multiple Listing Service (MLS). Listing agents can no longer advertise buyer broker compensation on the MLS, making it crucial for buyers to have a direct, signed agreement about how their agent is paid. Reddit +1What to Check Before Signing

• Duration: Does the contract last for one house or six months?
• Compensation: Are you comfortable with the fee structure?
• Termination: How easy is it to terminate the agreement if you are not satisfied with the service?. HomeLight