This is Your New Home Buyers Resource Page

When you are looking at Homes for Sale and are going to Visit a New Build Community your Real Estate Agent will need to accompany you when you Log In on the 1st Visit to the Model Home in order to be able to Represent you otherwise you will be on your own.

The Agents in the New Construction Model Homes Represent the Builder.

If you walk into a Model Home on your own you will be representing yourself in the deal.

You can and should be represented by a Buyers Broker-Agent who is paid by Selling Agents Broker, in our case this is the Builder.

The Builder automatically pays my Fees or Compensation so you will never have to Negotiate with the Seller (the Builder) or Compensate me directly.

Each Agent will work on full behalf of the Client that they represent, the Buyer or the Seller (Builder), and is required to provide Fiduciary Duties of Loyalty, Obedience, Disclosure, Confidentiality, and Accounting in all Dealings with their respective Client.

If a Broker-Agent is Representing both Seller and Buyer (Dual Agency), there will be conflicts in the Fiduciary Duties of Loyalty, Obedience, Disclosure, Confidentiality, and Accounting with their Clients.

As of August 17, 2024, due to a Class Action Settlement by NAR you will be asked to sign a Written Buyer Agreement after you’ve chosen the professional you want to work with. See the ARTICLE at the bottom of the page.

If you’re a Home Buyer working with a Real Estate Agent, it means you are working with a professional ethically obligated to work in your best interest.

Here’s what you should know about these agreements:

What is a “Written Buyer Agreement?”

What does it do? A written buyer agreement is an agreement between you and your real estate professional outlining the services your real estate professional will provide you, and what they will be paid for those services.

Why am I being asked to sign an agreement?

Written buyer agreements became a Nationwide Requirement for many Real Estate Professionals as a part of the National Association of REALTORS® proposed settlement of litigation related to broker commissions. The requirement went into effect on August 17, 2024.

I am not a REALTOR® for several reasons but these rules spill over into most transactions. I’m a Licensed Arizona Real Estate Agent, and in my case by choice only a Buyers Representative.

Are these agreements new?

In some places, yes. Many states have required them for years, while some have not. As a result, it is entirely possible you or others you know have not used them in the recent past. Regardless, they are now a nationwide requirement for many real estate professionals.

Are these agreements negotiable?

Yes! You should feel empowered to negotiate any aspect of the agreement with your real estate professional, such as the services you want to receive, the length of the agreement, and the compensation, if any. Compensation between you and your real estate professional is negotiable and not set by law. In the written agreement, the compensation must be clearly defined ( e.g., $ X,  X flat fee,  X percent ) and not open-ended or a range. Only sign an agreement that reflects what you have agreed to with your real estate professional.
As previously mentioned my Compensation is already set and offered and paid to me by the New Home Builders for helping them acquire and assist Buyers for all of the Homes that they have for Sale. Therefore you will never have to negotiate compensation for me.

How do I benefit from these agreements?

These agreements clearly lay out what services you ( as a home buyer ) expect your real estate professional to provide, and what your real estate professional will be paid. These agreements make things clear and reduce any potential confusion at the outset of your relationship with your real estate professional.

When do I need to sign an agreement?

You will be asked to enter into a Written Buyer Agreement with your real estate professional before “touring” a home with them, either in-person or virtually. If you make the 1st Visit to a Model Home without your Real Estate Agent you will be navigating and negotiating the Home Purchase Transaction on your own. You must bring your chosen Real Estate Agent and your Signed Written Buyer Agreement on the 1st trip to the Builder in order to secure Buyers Representation.

Does this mean I have to pay my real estate professional out of pocket?

Not necessarily. While you are responsible for paying your real estate professional as outlined by your agreement, you can still request, negotiate for, and receive compensation for your real estate professional from the seller or their agent.

Do agreements dictate a specific type of relationship I need to have with my real estate professional?

No – you are allowed to enter into any type of business relationship with your real estate professional allowed by state law where you live.

Can I change or exit an agreement?

Yes. You and your real estate professional can mutually agree to change your agreement. Agreements may have specific conditions under which they can be exited, so read the text of the agreement and speak with your real estate professional if you would like to change or exit your agreement.

Practices may vary based on state and local law. Consult your real estate professional and/or consult an attorney for details about state law where you are purchasing a home.

Please visit NAR SETTLEMENT FAQ’s for more information and resources.

All of the above information is due to a massive settlement made by The National Association of Realtors, NAR, whose Buyers Agents are Compensated by a “roughly” 3% Commission  for any transaction they are involved in, getting kicked in the face by the Law Firm that collected 33% in a settlement sum of $626 Million that promised dramatic changes in the real estate business.

ARTICLE:

Here’s a link to full article shown below addressing the NAR Settlement fiasco:
How a Lawsuit Against Realtors Went Sideways

The lawsuit charged that the NAR had excessive market power that allowed them to create handsome commissions for their agents, resulting in higher housing prices for prospective home buyers.

Indeed, the largest change from last year is that the plaintiff lawyers got massively rich. The plaintiff’s lawyers walked away with a third of the settlement- $208 million- and the estimated 50 million affected homeowners will pocket $8 on average, if they bother to apply for past damages.

As of August 17, 2024, Real Estate Professionals Nationwide will be asking Buyers to enter into a Written Agreement prior to Touring a Home.

When will I be asked to sign an agreement with an agent?

After you begin “working with” an agent and at any point before you tour your first house together.

What does “working with” an agent mean?

A buyer is “working with” an agent as soon as the agent begins to provide services, such as identifying potential properties and arranging tours.

What does it mean to “tour” a home?

Under the terms of the settlement, a “tour” is when a buyer who is working with an agent enters a home that is for sale or directs their agent to enter the home on their behalf. This includes when the buyer’s agent provides a live, virtual tour to a buyer not physically present.

What is the purpose of written buyer agreements?

Clarity and transparency. Written buyer agreements lay out the services your real estate professional will provide and what they will be paid. Buyers should not sign anything that includes terms they do not agree with or do not understand. You are in the driver’s seat with these agreements, which are fully negotiable.

Practices may vary based on state and local law. Consult your real estate professional and/or consult an attorney for details about state law where you are purchasing a home.

Please visit facts.realtor for more information and resources.