There has been quite a bit of media surrounding the NAR settlement and what it means for home buyers and sellers. Unfortunately, there has been some misinformation that has buyers and sellers confused as to what this settlement means and how it may affect them. Our team hopes that this Q&A helps you navigate these changes and better understand these changes moving forward.
If I have not signed a Buyer's Agent Agreement but have been working with my agent am I being represented?
No, you are not being represented until you sign a Buyer Agent Agreement.
Why do I have to agree to compensate my Buyer Agent? I never had to before.
The buyer's agent commission being offered by the seller has always been identified in the Vermont listing agreements since buyer agency came about many years ago. With that said every state differs and transparency had clearly become an issue. As such, most sellers opted to compensate the buyer's agent, and we would indicate in your buyer's agent agreement that compensation will be offered to the buyer's agent from the seller on your behalf.
HOWEVER, the post-settlement response from Sellers is them invoking their long-standing right to offer a decreased compensation or completely opt out of compensating a buyer's agent, as they have never been and are not required to compensate a Buyer's Agent.
Furthermore, As part of this settlement, the compensation offered by a seller to a Buyer's Agent is no longer allowed to be identified on any property listing on MLS(Multiple listing service - "MLS" - that feeds websites like Realtor, Zillow, etc).
Before showing you a property as your buyer's agent, our Team will inquire on your behalf if the seller has chosen to compensate a buyer's agent and what that compensation is.
If there is discounted or no compensation being offered, you and an Agent from our team can further discuss how you would like to proceed and what options we have to put you in the best possible position to win the bid on the property you are interested in.
The seller is not offering to compensate my Buyer Agent and we want to proceed with this property. What are the next steps?
Don't feel discouraged. The one thing that a seller and buyer have in common is the "net number". It's all about the bottom line on both sides. So how do we get there?
1. You can make a purchase offer subject to the seller agreeing to pay the buyer's broker's commission.
2. You can negotiate with the Seller in which case the seller may pay part of the buyer's Agent's compensation, with you paying the balance.
3. You as the buyer would pay the full compensation.
When does a Buyer Agreement need to be signed?
Before viewing any property in person or virtual.
More questions? Contact our team! 802-228-8877 or info@VTProp.com
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