NAR Releases Required Provisions for Written Buyer Agreements
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- เผยแพร่เมื่อ 5 ต.ค. 2024
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The National Association of Realtors has been steadily releasing updated clarifications ahead of August 17th when the NAR settlement changes take effect. These changes appear in the new 95-point FAQ document released on their website here: www.nar.realto...
In one of their most recent updates, NAR provided greater clarity around one of the larger changes: buyer agreements. In this update, NAR clarified what provisions must be included in written buyer agreements.
In this episode of the Chris and Garry show, we break down these provisions so you can prepare for the changes coming in August.
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I can not imagine that a buyer would sign an agreement to pay a buyers agent $15,000 to buy a $500,000 home.
Buyers are simply going to go directly to listing agents and/or have a real estate attorney represent them.
They can't go see the properties without a buyers rep agreement, so just trying to use an attorney isn't going to work.
@@JasonFeller so the listing agent won’t show me the house? They can’t represent both. Just go to open houses!
@@KAZHE63 that's fine, but when you do more than the initial meeting at the open house the new requirements will ask for a buyers rep agreement. I doubt the listing agent is going to represent the buyer for free, but maybe you would. Not me.
@@JasonFeller That is incorrect.
@@KAZHE63 In Oregon, agents absolutely can represent both sides.
Occasionally we find a buyers agent worth using but usually we contact the listing agent. Buying real estate has changed so much over the last 20 years with redfin, zillow etc. who provide so much information that agents jobs have also changed but commissions have not. This is the much needed correction. The useless agents will leave the industry and the strong ones will adapt and make it.
You will now have to sign a broker agreement with the listing agent as well for them to show you as they represent the seller and cannot let you tour the home until then. If you are serious about purchasing you will do it. This eliminates alot of buyers who go looking at houses for fun and waste agents time.
You can collect more than what is stated on the buyer's rep but you have to do an amendment to the buyer's rep.
I think the practice is definitely going to change in upcoming days and years, which I think is best in my opinion that seller should pay his/her agent and buyer should pay his/her agent. Each agent works for their client and in the best interest of their clients.
What if you have a buyer who needs to be financed through FHA? They most likely don't have the extra funds to pay their broker. What then?
@@margacsedillo8998 Then they can't afford to buy the house.
Can you do a video on WHY these NAR rules came into being?I mean specific cases/instances. Also, please answer WHY NAR is even important to be a member of for realtors.
Then, the buyer needs to wait and when they have the funds to pay the buyer agent the he/she starts looking for the house. Why the seller to pay from his pocket for the buyer if the buyer can’t pay. If both agree then they can add the agent fee to the cost of the and finance through FHA and in that way the seller can pay the additional amount they add to the agreed home price as sold price.
If a buyer wants to pay by the hours the agent is going to work for him/her, what is the average hourly rate looking at 10 last transactions?
@@ashoksahu2642 No video needed ! The chickens has come home to roost!!!
This is going to be lit
In my experience with buyers agent as a buyer for my two settlements I think the agent might have spent a maximum of 10 hours for each transaction. She showed me three houses and one agent even did not show up on closing day as there was nothing for him to do at the closing desk.
Sorry you had a bad experience, that not normal buyers representation.
How much hours a seller’s agent and a buyer’s agent spend from start to the settlement? Some broker said they spend between 30-40 hours per transaction, do you agree? If not, what is your number?
@@ashoksahu2642 at least depending on the transition sometimes it's double that. Showing houses send up appointments staging showing houses getting a home ready researching title information putting on advertising professional photos and lots more
@@ashoksahu2642
It depends, probably more on average, We are paid for our knowledge of the market, negotiation skills, networking, problem solving, and more.
If you want a professional getting the job done right then why does it matter how long it takes. I hire a plumber I paid him for his professional skills It may take him and hour or much longer to get the job done but I still pay him for the job.
@@ashoksahu2642 - It can vary greatly from initial consultation, financing, finding the right property, negotiating the contract, escrow, reviewing seller's disclosure, title, inspections, repairs, escrow/financing issues, to closing. Thirty to forty hours per transaction is not unreasonable; I've seen some take less time, and others take longer. It also depends on how thorough the agent is, the responsiveness of the client, the other side, the market, lenders, escrow, inspectors, appraisers, and other issues that arise during the transaction, etc. Several years ago, when the market was on fire, a buyer might write 5-10 offers and get outbid. So the home search starts all over, and over, and over, etc. Buyer's agents were spending much, much more than 30-40 hours on a transaction.
I dont want to sign an agreement just to see houses. 😊
Then your ass won’t see houses with a realtor! lol 😂 simple as that
@@rvandoom If my listing agent refuses to show my house because someone wouldn't sign an agreement. You are fired!
@@rack9458 after August 17 2024 you better start looking 👀 at FSBO!!
@@rack9458 Here's the reality: There are only so many hours in a day. Your listing agent can't be everywhere at once. That's why there are cooperating agents. As a 35+ year veteran broker, I can tell you 100% that the hardest thing you'll ever do is to pin down a listing agent. Hell, we can rarely get them to return their calls - So if you think they'll be willing and able to meet direct buyers, who aren't even willing to sign a 1-property buyer broker agreement in order to see a house.... there's a zero chance that they are going to risk their time with someone that uncommitted.
This career is going to be extinct 😂😂😂😂 hell yeah 👍🏼
Chickens have come home to roost! The banks, brokers , realtors , LO’s , buyers and buyer agents has been taking advantage of sellers for years! Why is it fair that a family spend hundreds and thousands to upgrade their homes and sell for peanuts 🥜 ? And pay 2-3% of their money to a door turner, someone who wants the benefit and a person who haven’t even seen your house? Make that make sense?? 1% is good 👍🏾! I’m a Loan Officer by the way! And a seller! I reaped the benefits of buying a beautiful home seller paid closing!
Silly wabbit. FMV because of the practice and necessity of the work required, and the risk undertaken (think of all the things Realtors are legally liable for and do get sued for)... includes the value of a market level commission. Remove that value, and your home value plummets - not just the cost of the commission, but to make up for the lack of ease and security of dealing with a licensed (liable) professional. To get your home sold without agents - you can easily assume at least a 10% reduction. Add on top of that assuming ALL of the personal liability for the stuff you DON'T know, but need to, in order not to be held guilty of fraud... Yeah - you'd be so much better off paying the commissions baked into FMV. Watch.