Dear Valued Clients and Friends,
You have probably seen the news regarding a proposed settlement from the National Association of REALTORS® (NAR). There has been an unending amount of media misinformation regarding our industry.
The media thinks that one size fits all. There has never been a “standard” commission, and fees have always been negotiable. Even within a single market, commissions can vary widely.
The market drives the home prices and not the commissions. Lower inventory results in higher prices.
THE NAR RULE AT THE CENTER OF THE LAWSUITS AND THE PROPOSED SETTLEMENT
Historically, Listing Agents were required to publish a blanket offer of compensation on MLS to the Buyer’s Broker in order to list the property on MLS. While the settlement removes this rule, Sellers will always have the choice to offer buyer agent compensation.
The settlement also introduces a requirement that all Buyer Agents have an Exclusive Buyer Agency Agreement in place before showing homes to a buyer. This proposed settlement will most likely be approved Mid-July 2024.
WHAT IS AN EXCLUSIVE BUYER AGENCY AGREEMENT?
A Buyer contract establishes the buyer's criteria, the services that the buyer agent will provide, and guarantees the agent's fiduciary responsibility to the buyer. It also outlines how the buyer agent is compensated for their work.
WHAT IF A BUYER REFUSES REPRESENTATION?
If a home buyer does not want representation, it will be difficult to compete in this market. The Seller's Agent will not be able to represent them or advise them. They will be competing against buyers whose expert agents have provided them with competitive strategies and shrewd negotiation. The Baker Team seeks “off-market” properties for our buyer clients. It is more difficult for an unrepresented buyer to find these homes on their own. The goal of a home buyer is to purchase a home. Our team helps you achieve this while helping protect your personal, confidential, and financial information.
WHAT WILL NOT CHANGE?
Our commitment to our clients will never change. We protect their interests, educate them, and give them our professional advice. We have always had trusting, exclusive relationships with our clients. Our fiduciary duties include obedience, loyalty, confidentiality, accounting, and reasonable care. Our clients tell us that our relationship and trust in purchasing a home is priceless.
We are grateful to our incredible clients and we remain dedicated to providing a top-tier customer experience. The Baker Team at Keller Williams has been well prepared for these rule changes. We will keep you updated as more information becomes available. Please reach out to us with any of your questions.
Patty, Jamie, and Erin
The Baker Team
