OPEN LETTER TO BUYERS REGARDING NAR SETTLEMENT

 

August 13, 2024

Dear Mr. & Mrs. Smith,

I hope this letter finds you well. I’m writing to inform you about some important changes in the real estate industry that may affect your upcoming property search.

As you may be aware, there has been a recent settlement involving the National Association of Realtors (NAR) that will bring about significant changes to the way real estate transactions are conducted. These changes are set to go into effect on August 17, 2024.

Key Changes You Should Know

1. Buyer Broker Agreement (BBA):
   One of the most notable changes is the new requirement for all prospective buyers to sign a Buyer Broker Agreement (BBA) before they can tour any properties. The BBA is a formal contract between you (the buyer) and your real estate agent, outlining the agent’s duties and the compensation structure. This change is aimed at ensuring transparency and clarity in the services provided by real estate professionals.
2. Compensation Clarity:
   Previously, the seller’s agent typically shared a portion of their commission with the buyer’s agent. However, with the new rules, it will be essential to clearly outline and agree upon how the buyer’s agent will be compensated. This is to ensure that all parties are fully aware of the financial aspects of the transaction from the outset.
3. Impact on Home Tours:
   Due to these changes, it’s important to note that you will need to have a signed BBA in place before we can schedule any home tours. This agreement will detail the services I’ll provide as your agent, along with the terms of my compensation.

Next Steps

I would be happy to walk you through the details of the Buyer Broker Agreement and answer any questions you may have. If you are ready, we can arrange a meeting to review and sign the BBA so we can proceed with your home search without any delays.

Please feel free to reach out to me at your earliest convenience. I want to ensure you are fully informed and comfortable with these new processes as we continue on your journey to find the perfect home.

Thank you for your understanding and cooperation.

Best regards,

Silence Dogood, PA
Carpenter's Hall Realty