How I'm Adding Value for Real Estate Buyers Amid Industry Changes - My Approach
Starting in August 2024, significant changes are coming to the real estate industry from The National Association of Realtors (NAR).
What is NAR?
The National Association of Realtors (NAR) is a professional organization for real estate agents in the United States. As of the most recent data, there are over one million members of the NAR across the country.
New NAR Rules and the Home Buying Process
Due to a recent court mandated ruling, the National Association of Realtors (NAR) has implemented new rules that affect our home-buying process.
Before we go out to look at homes, you must sign either a Showing Agreement or an "Exclusive Buyer's Brokerage Agreement". This document, which lists every home we plan to see, must be signed via E-sign by you and anyone buying with you before we begin viewing homes.
Consider What I Offer
No Retainer Fees: You won’t pay anything upfront.
Commission Cap: Buyer’s payment capped at 3%; I'll reduce my professional fee to 2.5% if the seller doesn’t cover 3%.
A portion of my professional fee is allocated to my Broker.
Cost Efficiency: You pay nothing if the seller’s contribution exceeds 2.5%.
If you'd like, we can submit offers asking the seller to contribute 3% towards the buyer's commission.
I'll contribute 10% of my professional fee toward your closing costs, See Details.
The Exclusive Buyer's Agreement must be signed at least 5 hours before submitting an offer on a home. To ensure you qualify for the 10% from my professional fee, and so that we can promptly submit the Offer to Purchase when you're ready, please request the agreement from Antonio Ortega LLC. He will email it to you for your review and approval.
Recent Updates
The NAR Legal Department has released new forms allowing us to ask sellers to pay compensation to the buyer's side.
Over 80% of home sales are facilitated by the buyer's agent rather than the listing agent, sellers want the market exposure that buyer's agent bring.
The Veterans Administration now allows buyers to pay buyer's commissions.
Important Disclosure From Antonio Ortega LLC:
When we submit an offer on a property over $400K, I will inform my broker and all other relevant parties involved in the transaction, as required by regulations, that I plan to contribute 10% of my Professional Fee toward your closing costs. This is the maximum amount I can contribute to the transaction. Please note that I must share my commission with my broker, and final approval is subject to broker and lender approval. Some transactions have limits on how much can be contributed to closing costs, but it is very likely that we'll clear all these hurdles. In summary, I will do my best to make this contribution, but it may ultimately depend on factors beyond my control.
How I do Business - My Approach
For our first visit, viewing two to three homes is ideal. Once you let me know which properties you want to see, I'll send you the "Showing Agreement" that lists each property. Due to new National Association of Realtors (NAR) rules, this agreement must be signed via E-sign before we go out to look at homes; this will only take a couple of minutes.
If someone is buying the property with you, please send me his/hers email via text or email to save time since E-signing requires separate emails.
Once you sign the Exclusive Buyer's Brokerage Agreement, we won’t need to fill out the Showing Agreement for future visits, making the process even smoother.
For our first visit, the Showing Agreement will suffice. However, for subsequent showings, my procedure and my Broker's requirement is to have you sign the Exclusive Buyer Brokerage Agreement.
This ensures you receive dedicated and personalized service throughout your home buying process.
One significant change is that commissions will no longer be listed upfront. Instead, buyers will sign an "Exclusive Buyer Brokerage Agreement" before viewing properties. This document specifies your exclusive real estate agent, meaning you are hiring an agent to assist you with home purchases.
I believe I should be that agent because I bring a wealth of experience and expertise. Licensed since 1978, I am an Accredited Buyer’s Agent with other numerous certifications.
Get Preapproved or Prequalified
Sellers prefer Prequalified buyers and often accept Preapproval. Be ready to provide proof of funds or a bank statement, as more sellers are increasingly asking for this documentation.
This ensures that buyers are financially capable of completing the purchase, providing sellers with greater confidence in the transaction.
Avoid big purchases and co-signing until after two weeks closing to maintain your credit score, check with your Mortgage Broker.
I have an excellent mortgage broker who can provide a pre-qualification letter in a matter of hours.
Feel free to use your own mortgage broker as well; send me the PDF letter to my email.
Exclusive Partnership
To provide the best service, I would like to be your Exclusive Licensed Real Estate Professional from our first meeting, formalized with an Exclusive Buyer's Brokerage Agreement, as one of the requirements by the National Association of Realtors.
This agreement ensures a dedicated and focused partnership, allowing me to fully understand and cater to your unique needs and preferences, ultimately making the entire process smoother and more efficient for you.
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PS. Be it today, tomorrow, or six months from now, I'm prepared to offer you dedicated extraordinary service.