There are a lot of changes happening in our industry and you may be wondering how it impacts you.
Buyers need and want a Realtor they trust by their side to help navigate one of the biggest investments they will ever make. It's that simple. We help people find their dream homes, handle the paperwork, and navigate the entire stressful process.
Recent changes required by Iowa's Real Estate Transparency Act and the National Association of Realtors' (NAR) proposed settlement agreement might be confusing; however I think the changes will overall be better for our industry. As of July 1, 2024 all buyers MUST sign a buyer agency agreement. A buyer's agency agreement is a contract between you and a real estate agent, outlining the terms of your partnership. It defines the agent's duties, how they're paid, and often includes exclusivity. Essentially, it's hiring a professional to guide you through buying a home.
The way real estate agent commissions are shown on property listings is changing. Instead of being listed upfront, the compensation a buyer’s agent will receive can now be negotiated as part of the home purchase offer. However, many sellers are still offering a buyer's agent compensation as they realize buyers may not have the funds to cover this cost after their downpayment and other costs associated with buying a home. We’re committed to paying a commission to buyer’s agents on all our listings. Our sellers have already agreed to this, but it still needs to be discussed and agreed upon by all parties as part of the offer.
How does this impact you as a buyer?
Compensation for your Realtor needs to be discussed in advance. If a seller is not offering compensation to a buyers agent the buyer will be responsible for these costs. So making sure you understand the financial responsibility and potential of having to have more funds for this is critical. You are HIRING your Realtor to work for you. There should be clear expectations set in advance and just as any service you pay for, you are hiring a professional to help you through all stages of purchasing a home.
How does this impact you as a seller?
Most buyers struggle to save for a down payment and closing costs. Asking them to also cover agent compensation is nearly impossible. If one listing offers the buyer's agent compensation and another listing doesn't, the first listing may become much more attractive. Sellers are not required to offer the buyer's agent compensation. There are flat-fee options out there. But you are hiring professionals to get your home sold. We are not a flat fee team. Our team invests heavily in professional photography, videography, and targeted marketing to get your home noticed. We want as many Buyers as possible to see your home, and so do you!
Bottom line: You get what you pay for. Buyers want experienced agents, and sellers want a team of experts. We’re happy to explain this in more detail during a consultation. In our world, nothing is changing because we are always going to work tirelessly for what’s in the best interest of our clients.
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