Understanding Written Buyer Agreements: What Homebuyers Need to Know
If you’re in the market for a new home, working with a Realtor® means having a professional dedicated to your best interests. As of August 17, 2024, homebuyers will be required to sign a written buyer agreement when working with a real estate professional. Understanding this agreement is essential to ensure a smooth and transparent home-buying experience.
What Is a Written Buyer Agreement?
A written buyer agreement is a contract between you and your real estate professional that outlines the services they will provide and the compensation for those services. This agreement ensures clarity, accountability, and mutual understanding throughout the buying process.
Why Are Buyers Required to Sign an Agreement?
This requirement is part of the National Association of Realtors®’ (NAR) proposed settlement related to broker commissions, which took effect on August 17, 2024. While some states have already required these agreements for years, they are now a nationwide standard for many real estate professionals.
Are These Agreements Negotiable?
Absolutely! Buyers should feel confident negotiating the terms of their agreement, including:
- Services provided
- Length of the agreement
- Compensation structure (flat fee, percentage, hourly rate, or even $0)
The agreement must clearly define compensation terms and should never include open-ended or vague ranges.
How Do These Agreements Benefit Buyers?
By signing a written buyer agreement, homebuyers gain:
- Transparency on what services to expect
- Clear financial expectations upfront
- Defined responsibilities of both the buyer and the agent
- A structured working relationship with their real estate professional
Do I Have to Pay My Real Estate Professional Directly?
Not necessarily. While you are responsible for payment as agreed in the contract, you can still negotiate for the seller to cover the cost. Your agent can help navigate these discussions.
Can I Modify or Exit an Agreement?
Yes. Agreements may include exit conditions, and you can discuss modifications with your agent if needed. Make sure to read the agreement carefully and seek legal advice if necessary.
How Global Vanguard International Can Help
At Global Vanguard International, we prioritize transparency and client advocacy. We help homebuyers:
- Understand their buyer agreements and negotiate favorable terms
- Navigate the home-buying process with confidence
- Secure the best deal possible in competitive markets
Take the Next Step with Global Vanguard International
Buying a home is one of the most significant financial decisions you’ll make. Ensure you have a trusted partner by your side. Contact Global Vanguard International today to start your home-buying journey with expert guidance and a clear understanding of your buyer agreement.
For more details on NAR’s buyer agreement guidelines, visit facts.Realtor.