Beginning August 17, 2024, many agents will be required to enter into a written agreement with a buyer before touring a home either in-person or through a live virtual tour and buyers should be familiar with what it entails.
There have been buyer agreements for decades in the real estate industry and it was always suggested that the agent have a buyer acknowledge it in their first substantive meeting. The practice of when it was signed was not scrutinized which is why some buyers may not be familiar with the practice.
The agreements benefit both parties specifying obligations and duties. The advantages for the buyer include:
Since the agreements may not be standardized, this article will familiarize you with the components of a typical agreement.
The agreement should specify and conspicuously disclose the amount or rate of any compensation the agent/broker will receive from any source. The amount must be objectively ascertainable and not ambiguous like "whatever amount the seller is offering to the buyer."
It should be stated that the agent/broker may not receive compensation from any source that exceeds the amount or rate agreed to with the buyer. Additionally, the agreement should note that broker commissions are not set by law and are fully negotiable and any other provisions required by state law.
If mandatory agreements have not been promulgated by state licensing authorities, the broker or agent can develop their own. However, there are some elements that should be included:
Buyer representation offers numerous advantages when purchasing a home. With a dedicated agent, buyers gain access to expert guidance and advocacy throughout the entire process, ensuring their best interests are prioritized.
From navigating the complexities of the market to negotiating the best terms and price, a buyer's agent provides invaluable support and peace of mind. Additionally, buyer representation streamlines communication, provides access to exclusive listings, and enhances negotiating power, ultimately leading to a smoother and more successful home buying experience.
Buying a home is a sizable investment relative to each buyer. Even if a person has purchased a home in the past, it benefits the buyer tremendously to work with a professional to advise them through the process and the buyer's agreement spells out the specifics.
Download our Buyers Agent Guide and schedule an appointment to get answers for your questions.
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Bob is dedicated to offering the finest real estate service available in the Lake Geneva area. He attempts to make each buyer or seller he works with feel like they are the one and only client he has and strives to make each transaction a pleasurable experience with the least amount of problems, stress, and inconvenience to them.