Do you have questions about the National Association of Realtors (NAR) commission changes that took effect on August 17, 2024? These changes make it so that sellers are no longer required to pay the buyer agent’s commission. What this means is that homebuyers are now responsible for paying their agents at closing unless the sellers offer to pay for it. Currently, buyers are not allowed to roll buyer agent compensation into their mortgage loan.
Offering to pay the buyer agent’s commission makes a home more attractive to buyers and ensures that the buyers have an agent. This is a good thing, because if buyers forego professional representation, sellers can face unforeseen risks to the transaction. Here are the values sellers get from having a buyer agent as part of the transaction.
Efficient buyer financing. Buyer agents can connect their clients with trusted lenders who have proven that they can close a transaction on time. The agents can also make sure that buyers deliver to the lender all the documentation needed for underwriting.
Well-informed offers. Buyer agents can provide clients with comparable market analysis reports (CMAs) to help them put together a reasonable offer.
A smoother contract process. Buyer agents guide their clients through the purchase and sale agreement. They make sure that buyers understand the terms and conditions of the agreement and that they can fulfill their commitments. Buyer agents also explain to buyers all contingencies, so that they fully understand the risks and rewards of waiving any of them. Buyer agents also make sure that earnest money funds are delivered on time, and that the buyers and the lender meet all deadlines.
Inspection and appraisal facilitation. Buyer agents can provide access to the home inspector and help buyers understand the report. If the buyer doesn’t have an agent, the listing agent must give access. Buyer agents also provide access to appraisers and can give them reports of comparable homes that support the purchase price. If the inspection uncovers issues, or the appraisal comes in at less than the purchase price, the buyer agent can work with the listing agent to come to an agreement that satisfies both parties.
A well-coordinated transaction. The buyer agent helps keep their client and related parties on track to close on time. Their expertise not only ensures a smoother process but also protects everyone involved from potential pitfalls.
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