Sarasota Real Estate News

Explaining Buyers Brokerage Agreement to a Buyer

August 15th, 2024 10:43 PM by Linda Holley

Last weekend a buyer inquired about a property he saw online.

Buyer: What would be the monthly net rental income on the home at this address, the cost of insurance, flood insurance, taxes, and will the homeowners association dues increase?  

I explained the changes in the laws and said that I must have a Buyer's Brokerage Agreement before giving advice, showing, or touring a property; that we'll discuss my commission on each property going forward and I'd try my best to see if each Seller would pay my commission for each property he wanted to see, tour, or for me to do the homework. 

Buyer: Well, I know that you don't work for free. Yes, send me the agreement and I'll look it over. Why are buyers being brought into this? 

Me: This is new. The National Association of Realtors was sued by a group of homeowners. Now, agents can no longer enter in MLS the commission that a Seller will pay. Buyers Brokerage Agreements must disclose the rate of agent compensation--which may not be open-ended; agents can't receive more compensation than is in the agreement. And now everyone fully understands and agrees that our commissions are fully negotiable and not set by law.  

And that's how the conversation went about Buyers Brokerage Agreements!

Thank you for reading my blog. Call Linda Holley, Realtor, GRI, SRES, CIPS, 941-914-4914, William Raveis Real Estate, Sarasota, Florida, for your real estate needs in Sarasota County, Florida.



Posted by Linda Holley on August 15th, 2024 10:43 PM

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