It’s been a whirlwind of speculation and anticipation—and many of us in the real estate industry believe the story will continues to evolve. What we do know about the NAR Settlement is, change is upon us. On Aug. 17, two big changes go into effect: Real-estate agents associated with the NAR will have buyers sign contracts before they show them any houses. This is to make it clear to Buyers that, if the sellers are not offering a commission, they will be responsible for paying their agent.
In addition, the Multiple Listing Service, where agents list homes that are on the market, will no longer be able to display the commission a buyer’s agent will get if they sell a house. Agents must now reach out to listing agents to learn if there is a commission being offered by the Seller.
NAR Settlement Breakdown:
- Properties listed on the MLS will no longer show if there is an offer of compensation to buyer’s agents. (Agents will have to call the listing agent to find out.)
- Prospective buyers will need to come to a mutually agreed-upon rate with their realtor as to what said commission will be if the seller is not offering compensation—and they must sign a written agreement with their agent prior to being shown properties.
- Whether you’re a buyer or a seller, the transaction process remains negotiable, meaning agreements can be altered as needed.
The Big Takeaway
The result of these changes has created confusion and speculation in the market with buyers and sellers. Both groups are scrambling to figure out how this will affect them individually. Here’s a sample:
- Buyers are now wondering “How can I afford to pay a commission on top of purchasing the property?”
- Since Buyers will be required to sign an agreement before viewing properties with an agent, it is essential that they do their due diligence and find a reputable and competent agent who can take them through the entire transaction. It is essential that you have a conversation about what it means to be represented and also a transparent conversation about how they’re paid. Purchasing a home is an important and big investment that you do not want to entrust just any agent to.
- Buyers have the option to request funds from sellers to compensate their agents. Subsequently, both parties can negotiate this compensation alongside the sale price of the property. An experienced agent will facilitate this negotiation.
- Realtors are already witnessing sellers not offering a commission or offering a reduced commission and getting less showings or lower than offers as a result.
- Some Buyers are tempted to purchase a home alone. Putting them in a situation where they must navigate all the intricacies and stipulations necessary to buying a home in the Lowcountry
Newsflash:
Buyer’s Agents Are More Important Than Ever
At the end of the day, buyers need representation. They need an agent. This is especially true now with an uncertain market and all the complexities of buying a Lowcountry home. After all, you would not go to court for a major issue without legal representation, or attempt to set a broken bone on your own. These comparisons are not, of course, apples to apples, but they underscore the fact that buyers are not experts in all things Charleston real estate—whether they are locals or relocating from out of state. The bottom line: selecting a good realtor makes all the difference with today’s new market conditions and NAR laws. After all, purchasing a home is a big deal, for many it is the biggest investment they will make.
What A Buyer Agent Does
(& Why It’s So Important)
While buyers can choose to work directly with a listing agent, they should clearly understand they are NOT being represented. That listing agent is working in the interest of their own client, the seller, and is merely handling the transaction for the buyer.
Your Buyers Agent…
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- Handles all required paperwork
- Drafts and submits offers
- Assists with negotiations
- Coordinates the closing process
- Smooths over bumps in the road and keeps things moving
- Reviews the inspection report with you
- Assists with re-negotiating after inspections reveal issues with home
- Ensures deadlines are met on the escrow timeline
- Advocates for and protects their clients’ interests
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“Hiring a qualified, diligent agent is more important than ever. An experienced Lowcountry agent brings a lot to the table: expertise and market knowledge, negotiating skills, trust, and clear communication, and so much more. Many buyers don’t realize how much is involved in the buying process, or how much a good realtor can ensure finding, negotiating and closing on the perfect property. I like to tell my clients that I give them a real competitive advantage in the Charleston market.”
Michelle Almeyda-Wiedemuth
Charleston’s Trusted Realtor
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TOP 10 Reasons Lowcountry Buyers Need An Agent
- A good agent gets buyers more looks and visits to area properties—agents do massive amounts of homework and research that buyers simply aren’t aware of or don’t have time to do themselves.
- A buyers agent enables you to find an off-market property. This is especially true in areas where inventory is extremely limited. The access and connections of a successful agent not only opens the doors to a larger pool of homes for sale, but can also provide an upper hand in competitive situations to securing the home of your dreams.
- The buyer’s “to-do checklist” in the Lowcountry is complicated and unpredictable, requiring guidance from a seasoned realtor. An agent brings knowledge and expertise of the local market and is able to compare the home and price to other properties on the market.
- The buying process can take months or years, depending on each buyer’s needs—good buyer agents are indispensable, investing lots of time navigating all the ins and outs of an often lengthy process.
- Buyers need resources and contacts, including the recommendations of local contractors, inspectors, builders, and landscapers who are necessary when buying a home. A good agent brings irreplaceable value by keeping you ahead of the curve, steering clear of delays and complications.
- Buyer’s agents’ foremost duty is to protect their clients, and ensure they get the best home, in the best location, for the best price.
- A buyers agent helps you simplify the chaos of the home-buying process. They will provide assistance with the purchase agreement, assisting with confusing clauses, disclosures, and contingencies to ensure everything works in your favor.
- A buyer’s agent has your back and saves you time—they will be with you from the first step to the last. An experienced agent on your side will eliminate the confusion and stress on conducting price and compensation negotiations, as well as navigating the paperwork.
- An agent can also help you negotiate potential seller concessions if the inspection reveals issues with the home. This is often a sticky subject that an experienced agent can resolve
- An agent gives you confidence and competitive advantage. They can help reduce buyer worry and stress, so that you can relax, knowing an expert is attending to even the smallest details and concerns
How Can I Help You?
“Having relocated to Charleston from up north with my family, I understand the buying and selling process at every level. My goal is to make it as seamless and efficient as possible, finding the ideal home for your family. I am happy to share what I learned about this dynamic coastal area, and help you make an informed decision about purchasing your Charleston dream home.”
-Michelle Almeyda-Wiedemuth
