Imagine you are in the market to purchase new appliances. You go to Home Depot and see some that you like. Unfortunately, none of them have prices on them. Of course, you want to know what the prices are, so you pull up the Home Depot website on your phone. Perhaps prices can be found there. No prices are listed there either! This may be a little bit of an exaggeration, but this analogy is similar to what’s going on in the real estate industry right now.
Agent Fees
Prior to the National Association of Realtors’ (NAR), settlement, buyers and buyer agents counted the listing agency compensating the buyer agent. That fee was clearly advertised in the multiple listing service (MLS). As a result of the settlement, buyer agent compensation is no longer guaranteed by the listing agency. It also cannot be listed in the MLS. This makes the NAR settlement bad for OBX buyers.
Why should this matter to a buyer?
If you are purchasing an Outer Banks property, then having an agent represent you is a smart idea. There are too many pitfalls that could cost you a ton of money. Plus, most people don’t have the time for handling all the details necessary to get a property closed. When you hire a Realtor, they must help you get the best value possible, and they have to make you aware of the good and bad of each property. Also, they should be helping you with just about anything you need help with associated with your purchase. In short, they have to look out for your interests like they’d look out for the interests of a loved one. Since their fee is no longer guaranteed by the listing agency, it needs to be guaranteed by someone. That responsibility may fall on the buyer.
If you are looking for more information about the settlement, then here’s a link to the Realtor website with some frequently asked questions and answers.
The new Realtor rules were enacted on August 17, 2024. So far, the vast majority of listing agents are still offering to pay the buyer agent. However, the only way to find out is to contact the listing agent. What does this do to the listing information available to buyers? It makes it less valuable because it is more difficult to compare properties for sale.
If you are looking at Zillow or some other Outer Banks real estate website, then you have no idea if you will be responsible for your agent’s fee. That fee could be thousands of dollars.
Transparency
Prior to the settlement, it was clear what the true cost of buying would be. Not anymore. I’ve talked with dozens of fellow OBX Realtors about this new business practice. There’s not even one who is happy with this lack of transparency. The makes the NAR settlement bad for OBX buyers. On the other hand, Realtors want to make sure their client has all the information they need to make good decisions. Knowing the buyer agent compensation is critical to the decision-making process. It’ll take more time, but Scott Team Realty will take that time to help their clients determine the true cost of buying OBX property.
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