It was a month ago that the NAR Settlement kicked in, and one new rule in particular was expected to turn the business upside down. From now on, buyers have to sign a contract with their agent before seeing homes in person, which hasn’t been required over the last 100+ years.

I’ve had four parties sign, and nobody has had a problem with it. Two knew me from before, and two had just met me – I was sure to bring it up early on, instead of surprising them later.

What we’ve learned:

1. Yes, it is a binding contract, but not really. If you are dissatisfied with your buyer-agent, the contract can be terminated with 30 days notice. If you told your agent that you wanted to cancel, I doubt they will be giving you much attention during the 30 days and most would be honorable enough to cancel right away so you could move on.
2. Having a written agreement should empower both buyer and agent to get down to it – it’s serious now!
3. The general public are finding out that commissions aren’t negotiable, especially with the best agents. Some agents may offer to work for less, so the rate shoppers need to look around to find a deal. They will find that what we called a commission is now a fee for professional services, and they should examine what services they will get for their money.
4. The new rule should cleanse the realtor population of the agents that need to go.
5. You still have to find the right house at the right price, which is the biggest challenge of all.

If you can’t find the right house at the right price, none of the above matters.

The new rules, more paperwork, and the confusion & chaos only serve as distractions to those who choose to be distracted. The highly motivated buyers and sellers will keep transacting with the assistance from the agents who have adapted to the new era and still have plenty to contribute to their clients’ successes.

During the frenzy, any mistakes were erased quickly with the rising prices. But those who have bought in the last couple of years have found out that mistakes are not only possible, they are a lot harder to fix today. Their stories will cast a more-cautious tone over the marketplace.

I think clamor over the new rules has already blown over, and now it’s all about Getting Good Help!

Jim the Realtor

Jim is a long-time local realtor who comments daily here on his blog, bubbleinfo.com which began in September, 2005. Stick around!

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