August 17th came and went, the day the NAR Settlement rules fell into place. Everyone agrees it’s been a confusing time for agents and consumers alike. Trying to sift through the new rules and be compliant have presented many challenges. Here’s one simple solution for the new commission rules:
START WITH A BUYER AGREEMENT
The NAR Settlement requires agents to use Buyer Agreements (BAs) prior to showing property. The definition of a Buyer’s Agent is that you do the following work on behalf of your buyer:
- Identify potential homes
- Arrange showings
- Negotiate
- Present offers
- Perform other services
The agreement must include a “specific and conspicuous” disclosure of the amount or rate of compensation you will receive. The amount of compensation must not be open-ended and can go lower but never over the agreed upon amount.
PUT IT IN THE OFFER
Here’s where it gets simple: Your buyers should, if needed, ask for your compensation in a purchase offer.
The consensus is that “....the DOJ has specifically said this would be permissible.” As such, any offer of compensation now becomes part of the sale negotiation if an offer is made. This is an effective way to embrace the new rule, stay on the straight and narrow, and enhance your role as a proactive and professional agent.
It really can be that simple.