Buyers need to know: New NAR rules for buyers and commission
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The National Association of Realtors (NAR) guidelines for buyers primarily focus on creating a transparent and fair experience for home buyers. Here are some key simplified rules that buyers should understand: As of Aug 6th 2024
- Exclusive Buyer Agreements: When you work with a REALTOR®, you often sign an agreement specifying that they represent you exclusively in your home search. This ensures loyalty and dedication from the agent but limits you to working with them alone for a specified period. No showing can occur with out this signed and the commission agreement signed by the sellers and buyer brokerage before you can enter a home. Preplanning will remedy this with your realtor and keep them compliant.
- Buyer's Agent Commission: Although the buyer’s agent helps you, their commission is typically paid by the seller as part of the home's selling price. However, in certain cases, buyers may negotiate how these fees are structured, and the buyer might need to cover a portion of the fees directlyto thier agent.
- ex:100,000 sale , seller is only paying 4%, 3% seller and 1% buyers agent. you would need to pay your agent 2% or $2000, if ea agent is 3%,Be aware of this possibility.
- Fair and Honest Dealings: REALTORS® follow a strict code of ethics, which ensures they are acting in your best interest, providing accurate information about properties, and making fair offers without misleading you.
- Confidentiality: Your financial details, motivation for buying, and other sensitive information must be kept confidential by your agent unless you give them permission to share it.
- Disclosure Obligations: Buyers should expect full disclosure of all facts affecting the property’s value. REALTORS® are required to share any known information about defects or issues related to the property.
These simplified guidelines help maintain transparency and trust in real estate transactions. For more in-depth details, you can visit NAR's official resources on their website