BUYER BEWARE: Before You Sign, Watch This Buyer Representation Agreement Breakdown!

The way real estate operates in the United States is about to change! One of the new rules coming into effect July 1st 2024 is that buyers must sign a buyer representation agreement with an agent before real estate services can be provided...including before the agent can show the buyer though any properties. Another change is that the buyer representation agreement is going to outline how much it might cost the buyer to work with the agent if the seller is not offering buyer agent compensation. This is a MUST WATCH video for home buyers BEFORE they sign a buyer representation agreement so that they don't get themselves locked into an agreement they regret.
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00:00 What is the Buyer Representation Agreement
02:19 Agent Duties, Services and Obligations
03:47 Buyer Obligations
05:39 Length of the Buyer Representation Agreement
07:20 Buyer Agent Compensation/Payment/Commission
11:13 Can You Buy Without an Agent?
11:52 Are You Worried? What Are Your Concerns?

[@lisadiconti]

Thanks. It's good to be prepared with all this info beforehand.

[@jillleggett8358]

Great explanation, Emily.

[@EmilyFarber]

Thanks for watching, Jill!

[@wwlt.trevor0512]

Excellent video, super helpful! So, after July 1, 2024, should I be concerned if an agent is willing to email me properties to look at online with my search criteria? Also, what if under the Buyer's Representation Agreement you don't find any properties you like? In most cases will you still have to pay the Agent a commission? Thanks in advance!!

[@EmilyFarber]

Hi, thanks for watching and commenting! I don't have a solid answer on "does an agent need a signed buyer's rep agreement for emailing properties." NAR recently put out a video that made it sound like "working with a buyer" included assisting with their home search by setting them up on an auto-search through the MLS. However, my state association is saying this is NOT something that needs a buyer's rep signed in order to provide...so I'm not sure at this time because they're providing conflicting information. As for what happens if you don't buy a property...it will depend upon the terms of your agreement. Some agents may offer an "a la cart" option where a buyer pays for individual services (showings, offer writing, etc). However, it will probably be more likely to see agents offer their services for either a flat fee or percentage of sales price fee due upon closing. If no closing happens, no fee is collected. Some agents may decide to ask for a retainer up front and comp that back to buyers at closing...but keep the retainer if the buyer rep agreement is terminated.