Happy July to all! This month I wanted to discuss one of the major changes coming in the wake of the National Association of Realtors settlement from earlier in the year. Starting August 17th all realtors cannot show you a home unless you have a written agreement with them.
First off, it’s important to note that this requirement applies to Realtors, or real estate agents affiliated with the National Association of Realtors. Though most real estate agents in the U.S. (over 93%, in fact), are Realtors, not all of them are.
Typically it’s not an issue for an agent to zip over to a property you’re interested in and show you the place and go from there. That agent could come, unlock the door and show you the home, no questions asked or contracts signed.
But coming next month the process won’t be that simple. An agent will not be able to unlock a door for you without the above mentioned written agreement.
Let’s be honest, nobody likes to have some kind of agreement contract thrown in their face. That’s why I thought I’d break down what this agreement looks like and why it doesn’t have to feel like the major commitment you might associate with “contracts.”
A couple months ago I discussed at length the benefits of buyer agents. Now let’s get into the required signed agreement that clients will need in order to use one moving forward.
My goal here is to dispel any possible negative connotations about this new requirement so that clients looking to buy a home don’t feel pressured when using their own agent in their search.
A signed written agreement between an agent and potential homebuyers isn’t completely new to real estate. Most agents working with clients ask them to sign a Buyer’s Representation Agreement, more commonly referred to as a Buyer’s Rep.
A standard Buyer’s Rep basically tells the agent that you’ll be working with them exclusively to buy a home. A Buyer’s Rep states the roles, duties and responsibilities of your agent in the process.
Though it’s long been a standard and encouraged by professionals to have a written agreement between an agent and their clients, this will now be required of all Realtors prior to showing any properties.
I want to clarify that an agreement isn’t necessarily the same as a Buyer’s Rep. Though clients and agents can decide to do this, what these agreements look like still remains unclear.
This may seem daunting, but it should be noted that these newly required agreements will be flexible and don’t have to be for the long term, and you as a client can decide on the type and length of the agreement, meaning that if you’re interested in a house but not necessarily ready to commit to a specific agent, you can sign an agreement that lasts one month, or a week, or only for one day. You can even sign an agreement specific to a property you want to see.
The important things to remember are to fully read and understand any agreement you’re signing, know that you control the term or length of the agreement and also understand why your Realtor is asking you to enter this agreement.
I want to speak briefly on this last consideration and encourage clients to understand and approach this new process with patience, as real estate agents make the necessary adjustments to the change.
Please don’t yell at an agent for asking you to sign an agreement before a showing. Know that they’re required to have one before working with you.
My goal has always been to place my client’s needs first, and being required to ask someone to sign an agreement with me prior to a property showing doesn’t exactly sit right. But I’m obligated to follow the law and maintain a high level of professionalism, and I hope my clients understand that.
With good, clear communication between client and agent this added requirement will be but a small and easy step, which is important because when stepping into what could be your new home, there shouldn’t be any trip and falls or stubbed toes!
This new requirement starting on August 17th is kind of a pain, especially if you’ve just happened upon a beautiful listing that you need to see now. But over the next month Goldfinch Realty will be working to make the new requirement fit seamlessly into the business.
If you have any questions or want to talk more about the changes coming to real estate in the coming months, feel free to shoot me a hello.
