What the NAR Settlement means for buyers

Understanding the NAR Settlement and the Importance of Buyer Representation

You may have heard about the recent settlement involving the National Association of Realtors (NAR). This settlement stems from claims that certain real estate commission structures were not always transparent to buyers. The case focused on how commissions for both the buyer’s and seller’s agents were often negotiated between the seller and listing agent, with buyers not fully understanding how this impacted them.

What this means for you as a buyer:

• The settlement aims to increase transparency in the home-buying process, ensuring you know exactly how agents are compensated and how commission fees are handled.
• You now have more visibility into how much your agent is paid and by whom. This change is designed to empower you to make more informed decisions when purchasing a home.

Why having buyer representation is important:

• Advocacy: A buyer’s agent represents your interests during the entire transaction. They’ll negotiate on your behalf, help you assess the value of a property, and ensure you’re not overpaying.
• Market Knowledge: They have expertise in your local market, offering insights on pricing trends, neighborhood developments, and other factors that could affect your decision.
• Transparency: With the settlement changes, having a buyer’s agent gives you clear visibility on their commission structure, so you can rest assured that they’re working for you.
• No Cost to You: In many cases, the buyer’s agent is still compensated by the seller, meaning you get the benefit of professional representation without an additional out-of-pocket cost.

Why a Buyer’s Representation Agreement is Required

As your real estate agent, my goal is to provide you with the best service possible and advocate for your interests throughout the entire home-buying process. To ensure that we’re on the same page and working together effectively, I’m required to have a buyer’s representation agreement in place before showing you any properties. Here’s why this is important:

1. Clear Commitment & Responsibilities: A buyer’s representation agreement outlines our working relationship. It ensures that I am fully committed to helping you find the right home and that you’re committed to working exclusively with me as your agent.
2. Professional Obligation: This agreement gives me the legal authority to represent your interests. Without it, I am unable to show properties or negotiate on your behalf because I wouldn’t be authorized to act as your representative.
3. Better Service: By formalizing our relationship, I can devote my full time, resources, and expertise to finding the right home for you. With a signed agreement, I’m able to advocate for you with the confidence that I am your chosen agent.
4. Transparency in Compensation: The agreement also clarifies how I am compensated, ensuring transparency throughout the transaction. Typically, my commission is paid by the seller, so there’s no additional cost to you as the buyer.

In summary, the NAR settlement is focused on making the real estate transaction more transparent for buyers, and having a dedicated buyer’s agent ensures you have a professional advocating for your best interests throughout the process.The buyer’s representation agreement protects both you and me. It allows me to provide you with dedicated service, ensures we’re working toward the same goal, and creates transparency in our relationship and the overall process.

Have questions regarding the home buying process? Feel free to contact me at baileyd@betterhawaii.com or at 808-282-7288 for a consultation!

Bailey De Vos
RS-83407
Better Homes & Gardens Advantage Realty