If you are thinking about buying a house, a home, a condo, twin single, duplex or investment property

The NAR lawsuit settlement.

Do home, or condo, buyers now have to pay commissions to the agent, realtor, real estate agent or buyer's broker?

Yes. No. Maybe. That seems like avoiding the question but it is accurate. 

One definite change is - Buyers now must sign a document with the agent, or realtor prior to viewing a property for sale. The document will address the fact the buyer agent, or real estate agent, expects compensation for services. If the property seller is not paying the expected fee, then the buyer(s) may be  obligated to pay the fee, or the portion not covered by the property seller. 

This became effective in August 2024. How it will impact real estate in Central Ohio is still undetermined. The general premise as I understand this was to make it more clear. Or more apparent to property buyers, that the person representing them, or helping them through the purchase process is getting paid for their service. In most cases sellers have paid the fees, costs or commissions. 

Example: The process has been the seller pays a fee of 6% to their listing broker. The listing broker then often offered the buyer's broker a fee of 3% - or half the total commission paid by the seller. This information was published on most MLS's so all agents could see if commissions were offered and if so - how much. 

This information will no longer be visible to agents via the MLS. It can be published though many other sites but not in the MLS. 

The buyer representation form used by my current broker gives two options for duration of the agreement. #1. The first one is a long term because it automatically renews up to one year. I wouldn't want to sign that, so I'll recommend the second option #2. which provides a start date and end date. It extends automatically, but only if the buyer is in contract. If in contract it extends through the purchase close date. 

Go for a short term agreement.

My recommendation is something like #2. If you've just met your agent. How do you know if you'll like them? Are you confident in their knowledge and experience? Do you understand what they are telling you? Do you feel like you are gaining knowledge about housing, the market and the process? Are they responsive to your calls, emails and text messages? Are they available when you need them? 

Until you have these basic needs satisfied, I would stick to shorter term representation. If your agent does a good job. And continues to do a good job, you can continue to renew any necessary forms. 

But you don't want to find out, after signing some long term agreement that the agent really isn't very helpful. 

1. Great question. The most common answer is you need to talk to a lender and get pre-approved.

I mostly agree; however, that's not any type of requirement. If you know your credit is good and your savings are sufficient, then you can likely pass on this initially. That doesn't mean you shouldn't get pre-approved early in the process. A pre-approval is needed sometimes in the early stages so you can make an offer, if the situation merits!

2.  Try to determine where you'd like to live: This might be a county, a specific city, it could be a zip code, a school district, or maybe as specific as a neighborhood or street.

Find a local expert that helps you find properties and get you into see the ones you like - quickly. I'd recommend an agent that you can call, text, or email and they respond back- FAST. The market is slower (2024) but it is still quite competitive. If you miss out on seeing homes you like, because your agent is not available. Or your agent doesn't answer your phone call. Or your agent doesn't respond to text messages, or just is not getting you into see the properties. That agent is either too busy, or too unprofessional (my opinion), their failure to call back, text back, email you back can cause you to have "lost opportunities. 

You don't want to say "I found a perfect property but my agent didn't answer"; or we didn't get a chance to see it. Or my agent couldn't get me in for a few days and while we waited it sold to someone else. That's not a professional, responsive agent. 

3.  8AM to 8PM for most. Generally, seven days a week. The homes tours, also called showings, are scheduled through a showing service which your agent can call and schedule, or go online and schedule. If there are a lot of showings requested (often the 1st day or 1st weekend) the times available can get booked up.

Some properties allow showings to overlap. Meaning multiple prospective buyers and agents can be looking at the same time.  Others don't. Some require a minimum advance time notice. This can be minutes, hours or even days. Some for sale properties, if vacant, are called "go and show" which is realtor language for call and schedule, almost at will.

In some cases the listing agent is the one who schedules and approves the showings. There are a few where the seller is approving the schedule for showings.

In the majority of cases a confirmation is sent to the real estate agent - and a good way for you to know is for the agent to forward that confirmation to you as well. (which is the Michael Bishop, The Cooler Real Estate Agent's practice)

4.  Typically, even with vacant properties, the showing times will typically have to fall between 8 AM and 8PM.

Some are more restrictive and a few may be more open on the schedule times. One issue is the newer electronic lockboxes (where the key is stored) also have some time limitations for when they operate.

There are also occasions where the responsible party to be called, does not answer, or return phone calls, emails, or text messages. Obviously, those properties can be hard to see. 

5.  This can be challenging. The ideal way is for both to go together, but in the real world, sometimes this is difficult. I urge a buyer, or buyers to see the property ASAP. So the recommendation I give is to go ASAP, as the norm.

If only one can go that is fine. If the first person (A) doesn't like the property - then the one who hasn't see it, generally says no need to schedule them in to see it. If person A, does like it, then a second showing can be scheduled ASAP for buyer two (B). Over the ~20 years in real estate - I've found when two are buying, then in almost 100% of those cases, both have to like the property and be in agreement about proceeding.

If your agent is not willing to do the extra work to make it happen - are they truly looking out for your interests? Buyers already have tough market conditions, so I would advise taking a view that the agent should be your ally. Working above and beyond to make the magic happen. If you are a committed buyer, shouldn't you also have a real estate agent committed to helping you? Whether that means showing a house, once, twice or even 3-4 times. A committed agent is a powerful ally in your quest to find your home!

6.  This is another challenge for a buyer, when searching remotely. In most cases an agent truly committed to helping their buyer can request permission from the seller to view the property and share a Facetime tour.

Another method that can work is for the buyer's real estate agent to request permission to take a video and upload the video and share with the buyer(s). This has become a more widely used practice since COVID. But it still requires the owner & listing agent's consent.

I have used this method a few times with remote buyers, and I became aware of how effective it could be back in 2015, when I sold a 7,000 brick mansion in Ohio to a buyer from Tennessee. It was my own listing but once he saw the video, he came to Ohio viewed it in person and purchased the home. Video is powerful.

7.  No. If permission is given by the seller, or seller agent you can, but it is private property and you cannot take pictures or video without permission.

8.  I'd advise a buyer NOT to talk openly about how much you like, or love the home… when in the property.

In many homes, there are listening devices used for normal home uses but they can also be open lines for listening. Remember the role of your buyer agent is, in part, to help you negotiate the best terms possible.

If the seller happens to hear you comment like: "I love this home, I want it!" How motivated does that make the seller to negotiate? or come down on the price? or help with buyer fees? I recommend buyers hold (positive) comments until they get back outside. Also making sure they are away from a ring doorbell or other listening devices that can be listening outside. 

9.  There are many places you can check your credit for free, online.

From comments I hear from lenders, these sites are helpful, but not generally comprehensive. I would encourage a buyer to start with one of these prior to beginning a formal loan application to purchase a home or property. Get a grasp of your overall creditworthiness, but then be prepared to start discussions with mortgage loan pro.