Buyer Agency Changes
NAR Lawsuit Ruling
In March 2024, the National Association of Realtors agreed to a settlement to resolve a series of class-action lawsuits. Following the settlement, buyer agent commission offerings are no longer allowed to be advertised in the Multiple Listing System.
Agreements Now Required Prior to Showings
The NAR has instituted new best practices following the ruling — buyers must have an agreement prior to a private tour with an agent other than the listing agent. This may be a buyer agency agreement or like agreement, including customer agreements.
What is Buyer Agency?
Realtors believe buyers should be fairly and equally represented during their transaction. A listing agent has a fiduciary responsibility to their seller. Because of this, listing agents suffer a conflict of interest when communicating with potential buyers. Home buying can be a expensive, precarious, and complex process. Having a single agent who knows your needs, gives solid advice, and represents your best interests while negotiating may be absolutely key to your success.
A buyer agency agreement is a contract between a buyer, their agent and firm outlining the agents duties to the buyer as well as a compensation agreement. You can view Wisconsin’s state approved form here.
Surprisingly, not much has changed in Wisconsin.
Wisconsin has had buyer agency agreements in place for a number of years. The biggest change is that sellers no longer advertise a commission offer to buyer agents in the MLS —agents are still free to discuss concessions elsewhere. Also, a line item for a commission request is written in the offer to purchase.
Commission offered to a buyer agent by a seller has long been considered an incentive to make a deal. Sellers and listing agents will continue to offer incentives to buyers and their agents as they did before, albiet less publicly.
The Key to Success
Buyer’s agents exist to educate, empower, and protect home buyers. They can’t work for free, but buyer agents are the ones who will find a way to get you into your new home with as little cash out of your pocket as possible!