2024 NAR Buyer Representation Rule

The National Association of Realtors (NAR) implemented a nationwide rule in August 2024 requiring every buyer to sign a written agreement with a buyer’s agent before touring any homes. This agreement lays out exactly what services will be provided and the buyer’s agent’s compensation. Buyer Broker Agreements can be for one showing, a week, a month or up to one year- it is your choice!

The written agreement (Buyer Broker Exclusive Employment Agreement) must include:

  • A clear disclosure of the amount or rate of compensation the real estate agent will receive, ensuring you understand that you'll cover the agent’s fee if the seller refuses to pay it.
  • Compensation that is specific and objective (e.g. a flat fee, a set percentage, or an hourly rate) and not open-ended (e.g., it cannot be 'the buyer's agent will get whatever the seller offers').
  • A term that prevents the agent from receiving more compensation than what was agreed upon in the contract with the buyer, even if the seller is offering more.

 

Sellers can no longer offer compensation to buyer agents through the Multiple Listing Service (MLS). However, a majority are still offering buyer’s agent compensation off the MLS, and can offer buyer concessions on the MLS, such as contributing toward buyer closing costs. Even if the seller is not communicating an offer to cover the buyer’s agent’s compensation, most buyer agents are writing into the offer that the seller shall pay the buyer’s agent’s compensation on behalf of the buyer.

My Advice

Take your time selecting an agent who will stand by your side and represent you in what is likely the most significant transaction of your life. Your agent should not only have a deep understanding of your goals and the market but also a proven track record of working diligently on behalf of their clients.

Credentials matter, but what truly sets an agent apart are the intangibles; the commitment to going the extra mile and genuinely caring for their clients. Ensure you feel comfortable with your agent and trust that they have your best interest at heart.

Have questions?

CLICK HERE for more information from NAR, or give me a call at 480-529-5893 and let's talk about it!