Fall Brings Confusion
DC Metro home buyers may be expecting interest rate reductions and new broker compensation mandates, but those aren't the only changes they'll encounter this fall.
New rules for touring homes are also in effect, visiting open houses may feel different, and the options for ministerial acts agents may provide to unrepresented buyers could become increasingly limited.
Here's what you need to know if you're planning to purchase a DC or NVA home this fall or winter.
Buyer Agency Agreements & Touring
As most prospective homebuyers are now likely aware, August 17th ushered in changes to real estate practices as a result of NAR (National Assoc. of Realtors) class action settlements, MLS participants now require a signed agreement before an agent can show homes.
Is that totally new? No. But while NAR has long recommended that agents obtain a signed agency agreement prior to performing any work for a home buyer, the practice is no longer optional. All MLS participants working with buyers are now required to have a written buyer/broker agreement prior to initiating home tours. This applies to NAR members, and other real estate agents.
The BAA And Broker Compensation
The new versions of DC Metro agency agreements call out buyer broker compensation requirements, prompting buyers to make decisions about broker compensation before signing. Ambiguous entries such as "TBD" or "Negotiable" are not permitted.
In addition, various addenda and additional forms have been created to make abundantly clear to buyers that payment of buyer broker compensation is their responsibility. Agents must discuss options for payment with prospective buyer clients.
Here's a copy (forms may be changed or updated) of the BAA for District of Columbia, issued by GCAAR this July.
There are also accessory documents applicable to buyers and sellers pertaining to broker compensation.
Open Houses
What about open houses? Can buyers still attend if one is offered?
Absolutely! In fact, open houses are the sole exception to touring a home without a representation agreement. Due to restrictions on what agents are permitted to do and say without triggering the 'working for buyer' provision, however, buyers may find that the information they can obtain at an open house is limited, and more effort will be required to have questions answered.
For more details and information on unrepresented buyers and new rules, see our webpage
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