The mandated changes from the Department Of Justice (DOJ) are being actively implemented at this time. This will effect our use of the MLS and requirements for working with home shoppers.
What you need to know if you’ve already been working with a licensed real estate agent and do not currently have a signed buyer/brokerage agreement (BBA).
Question: Can I still use the MLS portal that my agent has had me set up on?
Answer: In order to keep an MLS home search portal active for a home shopper, a buyer/brokerage agreement will need to be in place. Otherwise your agent will need to delete your portal in order to avoid repercussions from Department Of Justice scrutiny.
Question: What if I just want to view a home that is for sale in person with a buyer’s agent?
Answer: In order to show a property to a home shopper, a buyer/brokerage agreement will need to be in place.
Question: What am I actually committing to when I sign a buyer/brokerage agreement?
Answer: The details can vary and be somewhat negotiable. You will need to see what your preferred agent offers in regards to service and compensation options. View this agreement similarly to that of other service providers in your life. Example: Some lawn maintenance companies only mow and trim your lawn. Their monthly rates should be less than the company that also pulls your weeds and trims your trees.
So you decide what level of service you want & what it’s worth to you.
- Do you want the agent helping you to represent you, or just the transaction?
- IMO you should not have to pay as much for a transaction agent as you would a single agent.
- Do you want your agent to write the best contract for you, or simply the best contract to keep them out of trouble?
- Do you want your agent to drive you around? Are you looking for that full service experience?
- Do you want your agent to work evenings, weekends, and possibly holidays?
- Do you think they should help you work through issues that come up during inspections?
- Do you care if they are inexperienced? If not, offer them less compensation and see if they’ll bite. You may as well get the most for your money.
Question: How hard is it to get out of a buyer/brokerage agreement if I decide I want to stop working with that particular agent or brokerage?
Answer: Before signing a BBA, look for a section that provides for you to be able to end the relationship, without penalty, by simply presenting your termination request in writing to the brokerage. Not all brokerages may provide that option.
Question: Once I sign a BBA with a brokerage, does that mean they will be legally representing me and my best interests?
Answer: Only if you sign a single agency agreement. Most brokerages do not allow their agents to represent their customers at this level. You will have to specifically seek out this level of representation or ask Steve Martin Smith to find you such an agent.
Note:
A buyer will be responsible for honoring the compensation agreement for all of their current buyer/brokerage agreements. Therefore, it would be wise to ONLY SIGN ONE AGREEMENT. Choose a brokerage and real estate professional that you believe will serve you well and work with only them.
Written by Steve Martin Smith
Florida Broker/Sales License BK3314515
Residential Real Estate Professional
Coaching for Florida Sellers & Buyers
Co-Owner of Little Black Dress Home Staging & Detailing
#1 in Successful Closings 2020-2023 with RE/MAX Platinum Realty
RE/MAX Chairman and Platinum Award Winners
Member of the RE/MAX Hall Of Fame
Over $100,000,000 Sold