Finding Your Dream Home

Thinking of Buying a Home? Start with Selecting Your Agent.

In fact, as of August 17th, it’s the Law. When it comes to buying a home, selecting the right agent is crucial. Not only do agents bring negotiation skills, market knowledge, access to professionals, and invaluable guidance, but as of August 17th, having a signed agreement with your agent is now a legal requirement. The Department of Justice (DOJ), in a settlement with the National Association of Realtors (NAR), addressed what they deemed an anti-trust violation concerning real estate commissions. Historically, it has been common practice—but not a requirement—for the seller to pay the sales commission, with the buyer’s agent receiving a portion of this commission.

A Key Change Effective August 17th:

Mandatory Buyer’s Agent Agreement: Any broker or agent who is part of a multiple listing service (MLS) must have a signed buyer’s agent agreement before showing any properties. This contract ensures transparency and protects both parties in the transaction.

Contract Requirements:

Compensation Disclosure:

Clearly specify the amount or rate of any compensation the MLS participant will receive from any source, or how this amount will be determined.

Objective Compensation Amount:

The compensation must be clearly stated and not open-ended.

Compensation Limits:

MLS participants cannot receive compensation exceeding the agreed amount with the buyer.

Negotiable Commissions:

Broker commissions are not set by law and are fully negotiable. These changes are designed to enhance consumer protection. At Schur Success Group, we are proud to have always operated with these principles in mind.

What Your Contract Should Include:

Nature of Relationship:

Define whether you are entering a buyer’s broker agreement, transaction broker agreement, etc.

Service Levels:

Outline the type and level of service you will receive.

Contract Duration:

Specify how long the contract will be in place.

Compensation Details:

Clearly state the compensation you agree to pay your broker.

Termination Terms:

Identify when and how a buyer’s contract can be terminated.

Common Real Estate Terms:

Provide explanations for terms such as "closing", "holdover period", etc.

Additional Fees:

List any fees and costs outside of commissions and clarify if these will be credited upon a successful closing.

Before you begin viewing properties, we recommend starting with the agent or broker you’ll be working with. Get referrals from trusted sources, and interview potential agents. If an agent is unwilling to meet for an introductory session, consider it a red flag. Discuss your expectations, not just for the home you’re seeking but for the service you’ll receive. Will they address your needs and help you achieve your goals?

At Schur Success Group, we welcome your questions. We believe that an informed client is the best client, and we are here to provide answers and support. Many of our business transactions have blossomed into friendships and extended family relationships.

We look forward to helping you find your next home and becoming your next friends.

Contact us today at (719) 667-1000 to see how we can assist you.

In the meantime, please download our free home-buying guide.