A new set of rules is in effect in 2024 due to the 2024 NAR settlement. With these changes comes confusion from homebuyers and agents. There are a lot of dubious claims out there, and it’s easy for new buyers to get lost in the noise. Let’s break down 5 common misconceptions you might hear and set the record straight.
Here’s the deal: while the new rules mean agents need written contracts before officially representing you, you don’t need to be fully represented to tour homes.
You can attend open houses, request showings from listing agents, or even tour with buyer agents using non-exclusive, short-term buyer agreements (like Bramble’s).
You don’t need to sign a full buyer agent representation agreement, including a set commission upfront, to tour a home. Instead, ask if you can start with a touring agreement. If you feel comfortable with an agent, you can then consider signing a full representation agreement - but remember that you can negotiate commissions!
You are not obligated to sign anything just to attend an open house, though it’s usually fine to do so. At many open houses, you might be asked to complete a Guest Registration - this is usually a document that the listing agent uses to collect leads and may state that they represent only the seller and not you.
If you’re not comfortable signing, you can usually politely decline and view the house anyway. Never feel pressured into signing something on the spot—it’s your right to keep your options open.
Make sure any documents you sign don’t try to lock you into representation unless you're comfortable with it, especially if you’re planning to go unrepresented or to use a different agent.
“My brokerage doesn’t negotiate—our fee is 3%.” While it’s true that some agencies stick to specific rates, commissions are always negotiable. Agents are required to mention this, but they often make it sound like they’re doing you a favor by sticking to a standard rate.
Commissions are not like taxes; they’re not set by law. If an agent refuses to budge, you can shop around for another one that will work within your budget, or who offers alternative fee structures. You have the power to negotiate more transparently than ever before!
Some agents may insist that their fee is non-negotiable or try to intimidate you by implying that other agents won’t take your offer seriously if you don’t agree to their “standard” commission. It’s your money—don’t let them pressure you.
Don’t let anyone convince you that your dream house isn’t worth your time just because the seller isn’t offering a high enough buyer commission. (This is called “steering,” and it’s also illegal.)
While it’s true that buyer agent commissions are no longer automatically paid by the seller, you can still request concessions from the seller to cover all or part of your agent’s commission.
Even if concessions aren’t immediately on the table, you have options:
If an agent tells you a house isn’t worth it because you’ll have to cover their commission, ask about concessions. Agents might avoid this because it can complicate negotiations, but it’s an important tool to keep more money in your pocket.
“Don’t worry, if the seller doesn’t cover my full fee, I’ll waive the rest.”: This could be fine, but you need to be careful. Unless this agreement is clearly spelled out in writing, you are still on the hook for the full commission.
Many standard contracts have an “Entire Agreement” clause, which means that any verbal promises made by your agent are unenforceable. So, even if your agent promises that they’ll waive part of their commission, the contract you signed is what matters.
Avoid relying on any verbal promises to lower their fee. Always get any commission adjustments in writing within your representation agreement.
The new rules have created a more transparent, but also more complex, homebuying process. Remember that you have the right to look out for your interests in any agreements you sign: Take your time, read everything carefully, and don’t hesitate to negotiate. Remember, it’s your money, and you’re in the driver’s seat.
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