A Fresh Strategy to Make Your Offer Stand Out
The recent National Association of Realtors (NAR) settlement has prompted a significant shift in how the real estate process works, particularly for buyers. If you’re navigating today’s competitive market, it’s important to understand how these changes can impact your home-buying experience and potentially give you an edge when submitting offers.
One key change involves how real estate agent commissions are handled. Traditionally, buyers have funded both their own and, indirectly, some of the seller’s closing costs through the purchase price. These seller-side costs had typically included compensation paid to the buyer’s broker via the seller’s broker.
With the new changes, informed and strategic sellers will likely offer a seller-paid concession, helping buyers cover a portion of their closing costs, which could include the buyer’s broker’s commission. Advertising this concession attracts more buyers, creating competition, and helps sellers maximize their selling price and terms.
Now, however, buyers might have a new tool in their toolbox—when offered, buyers can opt to waive the seller concession and pay their broker directly by bringing additional funds to closing. This option allows buyers to offer the seller a higher net by covering their representation costs themselves, without necessarily increasing the offer price. In multiple-offer situations, this can make your offer more attractive to sellers, improving your chances of success.
Another critical change affects how buyers access homes. Aside from open houses, REALTORS® will no longer be able to tour homes with potential buyers unless a contract is in place. This means it’s more important than ever to secure representation early in your home-buying journey. Regarding open houses, the agents you meet there typically represent the seller and are primarily focused on the best interests of the seller. Remember that when you are considering how to best protect your interests. Additionally, having the right agent by your side ensures you’re prepared to navigate the process smoothly and act quickly when the right home comes along.
We’ll cover how to best leverage these new tools and strategies during our Pre-Purchase Counseling as part of our “Offer Strategies for the Win.” If you have any questions or want to discuss how these changes can benefit you, don’t hesitate to reach out. Let’s work together to get you into your dream home!
Also, click here to request a copy of our seasonal guide for buyers.