Buyer Agreements

You may have heard recently about some changes in the real estate industry. I'll try to be brief - while some forms have changed, the overall way business is conducted is very, very similar.

 

In the "old days", the seller would enter into an agreement with their agent to list their property. At that time, the seller would agree to an amount they would also pay the buyer's agent. The seller was never required to pay any compensation and compensation has always been negotiable. 

 

Now, the seller is no longer agreeing to what they will pay to the buyer's agent ahead of time. It is now part of the contract. Of course, again, the seller can still choose not to offer any compensation to a buyer's agent or counter an offer to reduce or increase the compensation. 

 

The other major change is that no compensation can be advertised in our MLS. So the seller may be more than willing to pay your agent as well, but that cannot be publicly advertised on the MLS or MLS related sites. Your agent may need to do some background leg work to advise you on what the seller is willing to offer - because an agent CAN tell another agent if the seller is willing to offer compensation, but they cannot share it publicly on the MLS.

 

What does this mean for buyers? You will have to sign a Buyer Agency Agreement prior to being shown a house. It indicates what the buyer is agreeing to pay their agent - regardless of if the seller is offering compensation to the buyer agent. This has ALWAYS been the case in Virginia, though many if not most agents didn't get the agreement signed until they were writing an offer.

 

It's scary to enter into an agreement with someone you don't really know to agree to pay an amount that may or MAY NOT be covered by the seller. You absolutely need to trust your agent in this case and their negotiation skills. They will be negotiating both your contract terms and their compensation being paid by the seller.

 

It's complicated. Of course, you have the option to go to an open house and see the property or call the listing agent, just like you always have. But is that what's best for you?

 

Everyone's situation is different - let's chat about it!