With just a few weeks left in summer, we have a MAJOR change in the real estate industry that is effective TODAY!

As part of the settlement that NAR (National Association of Realtors) reached, which will not be finalized until January, the way we work with buyers as real estate agents—including how we get paid—has changed, and it’s effective TODAY across the nation!

BUYERS, PLEASE BEWARE! Now, in order to tour a property listed for sale with an agent, buyers will have to sign a contract with that agent that states you, the buyer, will agree to pay that agent if you purchase the home. Some contracts have early cancellation fees, some are exclusive, and some are non-exclusive. There will be a variety of forms out there, and reading them carefully will be crucial. We are already seeing that this will be a challenging time of adjustment, and we don’t want our clients, anyone we know, or their friends and family caught because they signed a contract they didn’t actually read or understand due to pressure to sign on the spot in order to see a property. If you want to see a home or are soon in the market to start touring, please reach out to us. We will walk you step by step through our contract and how it will work. And to all of you future sellers, we can talk you through how this will work for you, too!

This contract that would-be buyers sign could obligate the buyer to pay that Realtor even if they don’t want to work with them and have canceled the contract.

Almost every day, it seems we are required to “AGREE” to terms and conditions for the latest iTunes agreement, an upgrade of Microsoft terms, or on some app that we often blindly sign without reading the fine print. Don’t let anyone you know or love do this with a buyer representation agreement! This is a totally new way that we are now doing real estate, and soon it will become comfortable and universally understood as a practice. But in this adjustment phase, paying close attention is critical.

Change is constant, and there is always good that can come from it, and this is no exception. We like that buyers will now be required to have a contract to work with us, just like the listing side when working with sellers. We are more concerned with the impact of adding another expense on the buying side of the transaction. However, there are many creative solutions coming forward, and this is just the beginning to help buyers with this potential extra cost. Sellers will still be able to pay a buyer's agent; it will just need to be part of the negotiation/offer. We know of lenders offering a 1% credit toward the buyer's agent fee that our buyers can use, and so can our sellers. The buyer's agent fee can be added into the sales price, and so on.

Another positive that is coming out of this is that buyers might be more cautious and thoughtful about who they hire to represent them, and agents should be able to demonstrate their ability to serve, starting with explaining this contract. We all know acting as a buyer's agent is so much more than just showing someone a house! Our years of experience and track record of effectiveness at winning offers, negotiating repairs, and leading buyers to achieve their home ownership goals—all while buying smartly—are strong aspects that should encourage buyers to pick us as their real estate agent. We can offer over 18+ years of serving clients' real estate needs in the Portland Metro Area and have sold almost 1,000 homes in many varied market conditions. :-)