Navigating the homebuying process is more transparent than ever in 2024, thanks to new mandatory forms designed to clarify costs for buying a home and responsibilities for first-time buyers. With guidance from real estate agent Agnes Rosiak Real Estate team as part of Team Tami in Playa Vista, let’s explore two key agreements, the Buyer-Broker Agreement and the updated listing agreement, to better understand the costs to buying a home and avoid surprises.
Here are the two main agreements you’ll encounter in 2024:
Buyer-Broker Agreement: This form establishes a clear relationship with your real estate agent, detailing their role, services, and how they’ll get paid. It also clarifies who covers the agent’s fee—whether that’s you, the seller, or both—so you can better estimate your total buying costs. Agnes explains that this form isn’t new, but it’s now mandatory, making it clearer to buyers upfront that agents are providing value and representation.
Updated Listing Agreement: This contract is between the seller and their listing agent. A key change is that the buyer’s agent commission isn’t automatically included anymore, making it open for negotiation between buyer and seller. This may mean buyers need to cover part of this fee, impacting total costs of buying a home.
When we bought our home, I remember feeling overwhelmed by the mountain of paperwork we had to review and sign. Understanding these forms from the start would have saved me so many questions later on.
Now, with the Buyer-Broker Agreement, buyers have a clearer view of agent roles and costs, and the updated listing agreement outlines who covers the buyer’s agent fees, letting both sides negotiate with more confidence.
Key Benefits of the Buyer-Broker Agreement
The Buyer-Broker Agreement, which outlines your agent’s role and compensation, is now required for all buyers. Here’s why it’s beneficial:
– Cost Transparency: The Buyer-Broker Agreement outlines your agent’s services and compensation, clarifying whether you, the seller, or both parties cover the fees.
This agreement clarifies exactly what you’ll pay, eliminating hidden costs or surprises.
I recently had a client uncertain about signing but felt secure after we reviewed it together.
Only sign an agreement with an agent when you’re fully comfortable with their support in the homebuying process.
Negotiation Power: This agreement lets you discuss costs with the seller, helping reduce your agent fee and overall buying expenses.
The Buyer-Broker Agreement establishes your agent’s role, allowing open discussions with the seller about covering fees.
With this agreement, your agent can negotiate seller coverage of buyer-agent commission, reducing your out-of-pocket expenses.
Experienced agents, like Agnes Rosiak, can leverage seller concessions to offset your expenses.
Protection for Buyers: The Buyer-Broker Agreement ensures you have representation through every stage, from making offers to closing the sale.
This agreement requires your agent to act in your best interests, guiding you through evaluations and contract terms. They’ll help you navigate inspections, manage negotiations, and avoid costly pitfalls that could come up along the way.
How to Approach These New Forms with Confidence
As a first-time buyer, it’s natural to feel overwhelmed by the prospect of more paperwork. However, viewing these forms as protection rather than obstacles can help. Agnes suggests that the best way to approach this documentation is through education and open communication with your agent. Here’s how to do it:
- Start with a Consultation: Schedule time with your potential agent to review the Buyer-Broker Agreement line by line. This helps you understand the services, agent fees, and their impact on your total homebuying costs.
- Be Open About Your Budget: New agreements help buyers see upfront costs clearly. Agnes suggests discussing your budget openly with your agent so they can explore ways to reduce costs. This could be negotiating seller concessions or finding buyer-friendly properties.
- Ask Questions: If any part of the agreement or fee is unclear, ask your agent to explain. Remember, these forms are designed to protect you as much as they protect your agent.
Why Having an Agent is More Important than Ever
These new agreements make it essential to work with an agent who can guide and advocate for you. Agnes and Team Tami bring extensive experience, ensuring first-time buyers understand each contract line and homebuying cost.
An agent like Agnes explains these forms and negotiates for you, preventing overpayment and surprise costs. A great agent serves as your advocate, allowing you to feel confident about each part of the transaction. From signing the Buyer-Broker Agreement to closing on your dream home.
Ready to Make Your Dream of Homeownership a Reality?
Buying your first home doesn’t have to be overwhelming! With the right guidance, you can approach the process feeling informed, prepared, and excited. That’s exactly what the Stress Free Homebuyer Academy is all about. It helps you create a personalized, step-by-step plan to navigate the homebuying process confidently.
In the course, we’ll focus on the practical tools and insider strategies that set you up for success. You’ll learn to communicate effectively with your agent, understand key buying costs, and make goal-aligned decisions.
Or, if you’re ready to jump right in, schedule a free Meet & Connect Call! We’ll discuss your unique situation, answer pressing questions, and begin creating a plan to make your homeownership vision real.
For more posts to help you buy with confidence, visit the Growing Home blog. You’ll find resources to make every step of buying a home easy, transparent, and fully prepared!
Or, take the What’s Your Homebuyer Superpower? quiz today and discover your unique advantage that will help you find your dream home.