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    The NAR effect (National Association of Realtors)–a realtor’s perspective

    A detour is ahead in the real estate industry. The NAR effect you’ve likely heard about will cause the industry to pivot. I’m referring to the class action lawsuits that will create a sea of change in how realtors transact business.

     

    From mid-August on, BUYERS will be required to sign an “employment agreement” with their agent. This agreement must outline the agent’s services and how much they will be paid, similar to what SELLERS traditionally sign when hiring their agent. This is a best practice to have agents demonstrate their value and explain to their buyer client how the home buying process works.

    You don’t need me to find you the house. You don’t even need me to open the door. What you hire me to do as your buyer’s agent is to manage risk. Most people only buy or sell a home a few times in their lives. They need guidance as well as certainty to not mess up one of their largest investments–their home.

    Another change is how buyer’s agents will be paid. This offer of compensation will no longer be shown in the MLS. The ruling doesn’t say buyer’s agents won’t get paid, but it will change how we share that information. Buyer’s agents can be paid by the seller, by the buyer, or negotiated as part of the offer.

    Does the seller have to pay the buyer’s agent?

    No. That hasn’t changed.

    The seller has always been able to negotiate what he pays the agent. Why should the seller pay the buyer’s agent?

    Many can’t afford to pay their buyer’s agent on top of the costs they already pay closing costs, inspections, high interest rates and down payments. Then the buyer might not have a representative on one of the most expensive investments of their lives.

    As a seller you might ask–why do I care? Your property could be more expensive to your buyer than a competing neighbor house that is offering to pay the buyer’s agent. A buyer’s agent keeps the sale together by guiding the buyer through the 90 ways he serves the client. Finally, most sellers are also buyers who would then need to pay on both sides of the deal.

    Buyer’s agents perform important services in the real estate transaction, particularly because the path to closing is unknown. Realtors want what’s best for the consumers. Our goal as realtors is to create a smooth transaction for our buyers and sellers during a period of time fraught with stress. We get paid to solve problems and our income is a direct result of the value we bring to the marketplace. As a small business owner I believe it’s a good thing to show expertise, knowledge and guidance. We work to improve the level of service in the industry. How important is it that you have a trusted professional represent you?

    Based in the heart of Northbrook, IL, Caroline Gau REALTOR® has carved a niche for herself with over 23 years of unparalleled expertise in the real estate domain of the Chicago suburbs. Renowned for her adept guidance to young families moving to Northbrook, Caroline deploys her hyper-local knowledge, ensuring her clients save time, money, and sidestep potential pitfalls. Now proudly associated with Real Broker LLC, Caroline is distinguished as one of the top 1% of real estate agents by the North Shore Barrington Association of Realtors (NSBAR )-Northwest. On a personal note, Northbrook isn’t just a business locale for Caroline; it’s home. She shares her life there with her husband, Derek Gau, and their three sons. As both a real estate maven and an active community member, Caroline seamlessly bridges her professional insights with genuine local care, making her an invaluable asset for those seeking a home in the North Shore.

    Caroline Gau
    (847) 477-4825
    CarolineGau.com

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