Starting August 15, 2024, all real estate agents will need a signed Buyer Broker Agreement before showing any property. This is required by both the National Association of REALTORS (NAR) and Louisiana law. So, what does this mean for you as a home buyer?

What is a Buyer Broker Agreement?

A Buyer Broker Agreement is a formal contract between you (the buyer) and your real estate agent. It explains the agent’s services and how they’ll be paid, ensuring everyone is clear on the home-buying process and the agent’s compensation.

Why is This Changing?

In the past, buyers didn’t usually pay their agents directly. Instead, the listing broker covered those fees. However, this is changing based on a legal settlement entered into by NAR, and it will affect how you select, hire, and pay your agent.

Key Elements of the Buyer Broker Agreement

At Crescent City Living, our agents have always provided top-notch service by helping you find the right properties, scheduling showings, offering market insights, assisting with offers and negotiations, and guiding you through closing. We’ll continue to protect your best interests.

The only change is that now we’ll have a written contract with our buyer clients, just like we already have with our sellers.

Our contract includes:

• Exclusive Partnership: You agree to work exclusively with your agent for a set period.
• Agent Compensation: Details on how and how much your agent will be paid.
• Agreement Duration: How long the agreement lasts.
• Termination Details: How either party can end the agreement.

How We Get Paid

Previously, buyer agents were paid by the seller through the listing agent. Moving forward, buyers will be responsible for their agent’s fees. However, you can still ask the seller to cover some or all of these costs as part of your offer. Everything in the real estate purchase agreement is negotiable.

Can you hire an agent for a short term?

Absolutely. Your agreement with an agent can range from 1 property to 1 day to however long you want to hire them. You don’t have to commit to an agent you don’t know right away – think of a short term agreement as a blind date. If you like each other, you can turn it into a relationship.

Interviewing Agents

We recommend interviewing several buyer agents before starting your home search. Since you’ll need to sign an agreement before touring properties, it’s important to choose the right agent for you. Please don’t just hire the name on the sign.

Questions?

We’re here to help. Feel free to reach out to us at 504-327-5303 with any questions.