A Sea Change

"I'm out in front of your listing," the potential Buyers said. "Can you run over right now and show it to us?"

"Are you currently represented by an Agent?" I asked.

It had been a long day and the thought of meeting strangers at a house they could have seen during the Open wasn't sitting well with me.

"No, if we like the property, we'll write with you," she said.

"No," I replied, "that would create an inherent conflict of interest as Sarah and I already represent the Seller."

"But we're looking for an advantage . . . "

"As is everyone." I said. "Your Agent will receive the same information that everybody else receives," I assured her. "That's the only advantage I can promise you . . . " (In other words, you need a licensed Realtor® to represent YOUR interests.)

With news that the NAR has settled a class-action lawsuit that is set to bifurcate commissions once approved by the courts, it's clear we're in a sea change. With the understanding that Sellers will no longer be obligated to pay the buy-side commissions (whether they should is another argument), Buyers are suddenly looking at a cost they didn't previously have to budget for. Additionally, the agreement will also require prospective Buyers to sign Representation Agreements prior to being shown properties for sale. Come July, the casual "go-see" will be a thing of the past, so be prepared.

AND because Agents expect to be paid for their time and expertise, these agreements will explicitly outline the Agent's fee, the timeline, and the geography surrounding a specific search. However, if the Seller is offering a commission - as they have previously done so in the past - there will be no fee to pay. BUT if the Seller is offering less than the agreed upon sum - or worse yet - no commission at all, Buyers will be expected to absorb the difference and that's going to cut into their bottom line.

Given this new, uncertain landscape, Buyers seem to be shying away from aligning with Buyers' Agents, preferring to call the listing Agent to show them properties instead. Herein lies the problem . . . Buyers seem to think they can sidestep the process, represent themselves, or encourage Agents to participate in dual agency in order to save on commission. (Sadly, there are many who will.) and regrettably, none of those choices are going to work in a Buyer's favor, especially when in competition.

Let's be clear, understanding the significance of partnering with a Buyers' Agent when embarking on the home-buying journey is not only crucial for ensuring a smooth and successful transaction, it's also about understanding what, exactly, you are purchasing with your hard-earned cash. The sad truth is that unrepresented Buyers tend to overpay for their properties, having no real guidance as to a property's true worth. Without due diligence and without market knowledge, unrepresented Buyers can easily assume they're saving money when in fact, they've just paid too much for the house . . .

In the world of "penny wise and pound foolish," the amount you save by trying to avoid paying a Realtor®, may very well cost you far more in the long run. I ask you, would you go to court without an experienced lawyer? (No, you would not.). Nor should anyone attempt to buy a home without an experienced Agent by their side.

From navigating the complex real estate market to negotiating the best deals, having a trusted professional by your side can provide invaluable expertise and guidance. By aligning with a Buyers' Agent from the get-go, you not only gain access to their market knowledge and resources, but you also benefit from their unwavering commitment to helping you find the perfect property that aligns with your needs and preferences.

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