Coming Soon… a MANDATORY Buyer Representation and Broker Compensation Agreement (aka BRBC) between a home buyer and their real estate agent… very similar to the Residential Listing Agreement (RLA) for home sellers. We have been using this (BRBC) for a while and soon (June or July of 2024), it will become mandatory. I’ve been a proponent of this for a while. It’s nice to see that real estate agents will be using this when an offer is written and likely, a prospective buyer will need to have this agreement in place prior to viewing a home for sale. This will help alleviate the confusion as to which agent is representing a buyer as well as who will be responsible for the buyer’s agent’s compensation.
Since the commission has been built into the sales price (for more than 100 years), I believe that (most of the time) the compensation will still come out of the seller net proceeds. This being said, since the commission/compensation is built into the sales price, technically the buyer is paying for it…. over time.
Reasoning: If a home seller were to sell their home on their own (ie, no representation), the statistics show that the home seller would net about 10-20% less … as opposed to what a home seller would net if they had proper representation from a professional Realtor. Plus, most Realtors in California belong to the California Association of Realtors (CAR) and the forms and agreements that we/CAR use have already been vetted out…. And because we live in such a litigious society, having the proper paperwork is invaluable. With this in mind, hiring a professional Realtor isn’t an expense, it is an investment in the protection of your net profits from one of your most valuable assets…. Your home.
The CAR forms are designed to protect both the buyer and the seller. So, whether you are buying a home or selling a home, it is best to be represented by a professional, licensed Realtor. (By the way, the (coming soon) mandatory BRBC is only one aspect of the NAR settlement and the settlement has not yet been court approved. Feel free to contact us/me for more information).
The Attached Flyer: Be in a position to Move… If you’re thinking about buying, get a pre-approval letter from a reputable lender and if you’re thinking about selling, have your home shine inside and out… and WE can help you with BOTH!!!!
If you know of anyone that is thinking about selling let us know… and we’ll help them get what they’re looking for.
All The Best from The Hier Advantage Real Estate Sales and Service.
