Monthly Report!

There has not been a big change in the market from last month to this month. The market has remained steady this summer. We don’t know if the new regulations of Buyer Brokerage Agreements will impact sales, but it will be confusing at the start. This month, we would like to focus on the Buyer Brokerage Agreements that we will have to use beginning August 17^th. While we are not experts or claim to know all the details of this regulation, this is our understanding.

New Section 5.0.1. Written Buyer Agreement. Unless inconsistent with state or federal law or regulation, all MLS Participants working with a buyer must enter into a written agreement with the buyer prior to touring a home.

A “home” means a residential property consisting of not less than one nor more than four residential dwelling units. The proposed settlement agreement is focused on residential real estate transactions. That means most commercial transactions will not be affected – or not at this time.

There are a couple of variations, and we are expecting a new version to come out prior to August 17^th. A written agreement can be referred to as a Buyer Brokerage Agreement, so you may hear both of these terms used. You may hear it abbreviated as a BBA. A BBA is not for an extra commission and doesn’t mean the Buyer will pay a full commission. If a Seller is not offering a commission, then the Buyer pays it according to the BBA.

Be careful of scams. Sellers — Don’t let pretend Buyers into your home. They will tell you they want to see your home but don’t want to sign a BBA, and once they are in they rob or take advantage of the situation.

Buyers — Be sure you are working with someone you trust before you sign anything. Buyers make sure you know what you are signing. You will pay a commission to this agent if you buy any house during the time period specified on the BBA. If you sign this one this week and sign another next week with a different agent, you may owe two commissions.

It is now more important than ever to choose a Buyer’s Broker before you start looking at homes.

Here at Smith & Smith Realty, we work as a team, so we have someone to show you homes when it fits your schedule and can go over the different kinds of BBAs offered. We expect this to evolve over time.

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We appreciate your business. We value your real estate needs and are honored to serve you.

Sincerely,

The Team at Smith & Smith Realty, Inc.