Our Goal: Informed Buyers
Finding and purchasing the right home is a complicated process requiring the expertise of a highly capable representative. At the Laughlin Tanner Group and Premier Sotheby’s International Realty, we understand the importance of the special place you will call home and pride ourselves on the experience of our real estate advisors and our ability to guide you every step of the way.
NAR’s recent settlement has led to several changes that benefit homebuyers, and we want to clearly lay them out for you. These changes went into effect on August 17, 2024.
Below are some frequently asked buyer questions resulting from recent industry changes:
Q: Do I need to sign a Buyer Representation Agreement as part of a search for my next home?
A: Yes. REALTORS® are now required to obtain a written representation agreement with every buyer prior to conducting a home search to provide more transparency on real estate services and fees. The agreement will reflect the terms buyers have negotiated with their agent, including what services will be provided, for how much, and how the agent will be compensated.
Q: In the past, the seller always compensated my agent as part of the transaction. Has this changed?
A: Yes and No. The mandates do not specify who ultimately pays the buyer broker, yet there is a requirement of the REALTOR® to disclose the associated fee for services rendered. This fee is ultimately the obligation of the buyer, yet there are scenarios in which the seller may offset the fee:
- Many sellers of properties you view will offer compensation to the buyer broker. That amount will be offset against the amount reflected in your Buyer Representation Agreement.
- You may make an offer contingent upon the required professional service fee of the buyer's broker being paid by the seller.
- You may make an offer of a lower amount on a property based on the projected cost of the professional service fee you will pay at closing.
Q: Is there a specific commission amount required in your Buyer Representation Agreement? Aren’t such fees negotiable?
A: Real estate fees have always been negotiable, and nothing has changed in that regard. However, every company establishes its own standard for professional fees based on the level of service rendered and the quality of the customer experience. You will find a range of fee structures within the industry, and just as much variation in the level of service provided and value received.
Q: Is there a distinction between Limited Buyer Representation and Exclusive Buyer Representation?
A: Yes. In a limited representation scenario, you are not obligated to a specific relationship and, therefore, representation could change based on the property purchased. While appealing on the surface, this is a success-based business where no compensation is earned unless your objectives are met. There is an enormous investment of time and expertise on the part of an advisor, and buyers often find that in the absence of a commitment there is a compromised level of effort. To be the highest priority for your advisor, we highly encourage our customers to be confident about their choice and then commit to an Exclusive Buyer Representation Agreement.
Q: Is there a standard time frame for Buyer Representation Agreements?
A: No. That is a decision for you and your advisor to collectively reach based on your expectations for the home search process and general time frame. However, it may be beneficial to consider the timeline from the start to the closing of previous purchases for accurate determination.
Q: What services may I expect from a Laughlin Tanner Group real estate advisor?
A: The value of your advisor will be evident from the beginning in the methodology used in the consultation, to the elimination process undertaken with extensive market knowledge to ensure you find the right home, to educating you on values so you don’t pay more than you should, to arranging for all services and inspections necessary to lower the risk of buying a home with issues, and to manage all details from the start of your search through closing and beyond. For over 30 years, the Laughlin Tanner Group has set the standard for quality, service and value. Our team is full-time, highly-experienced and with an average level of production per advisor three to five times that of a typical agent in the market.
