With the new post-settlement practice changes, agents are focusing on written buyer agreements to build trust, set expectations and enhance professionalism.
CHICAGO – Brokers and agents continue to adapt to the practice changes implemented as part of the association’s settlement of litigation, which was granted final approval in late November.
Florida agent Vanessa Franz Barnes, ABR, CIPS, recalled navigating the buyer-broker agreement with clients she’s worked with for more than 15 years.
“They bought with me four times [and] never signed anything. This was their fifth purchase with me, so you can imagine how uncertain and overwhelmed I felt about having them sign this agreement,” she said.
After the settlement’s preliminary approval in March, the National Association of Realtors® launched facts.realtor as a single hub to educate members and consumers. Since then, NAR has continued to add tools to the site, like the “Dos and Don’ts” resources for working with buyers and sellers following the Aug. 17 practice changes.
Prep work that shows you’re a pro
Franz Barnes, an agent with Keller Williams at The Lakes in Celebration, Fla., spoke at NAR NXT, The Realtor® Experience, in Boston in November. She emphasized the necessity to clearly and frequently demonstrate your value to buyers and to help them understand the benefits of written buyer agreements—including setting expectations, defining responsibilities and building trust.
“[A buyer agreement] protects both you and your buyer by outlining those terms and eliminating misunderstandings that we might have along the way,” Franz Barnes said. “And it demonstrates your professionalism.”
Real estate agents should prepare for questions.
“I remember my husband coming to me like, ‘Babe, how are we going to do this?’” Franz Barnes, who works with her husband, said. “I said, ‘What we’re going to do is we’re going to dig in, we’re going to put that fear and doubt aside, and we’re going to educate ourselves.’ So, I took every class NAR and my local and state association offered.”
Agents should also prepare to negotiate, she said. Agent commissions have always been negotiable, and written buyer agreements drive that point home.
“Ask the buyer more questions to dig a little bit deeper. Let’s get really curious about what is their hesitation, because you might be thinking something completely different,” Franz Barnes told the audience. “And then share stories. What stories can you tell to validate the compensation you’re asking for?”
Living by a Code
Aside from highlighting their personal skills, agents should be able to articulate the value they bring as a Realtor, a member of the National Association of Realtors, guided by the Code of Ethics, said California broker Barb Betts, AHWD, C2EX, of The RECollective in Long Beach.
Betts talked about the importance of the Realtor brand during a presentation at NAR NXT. “I think some of you think everybody’s a Realtor,” she told the audience. “No, they’re not. That everyone has these standards. No, they don’t. And I think that in this world we live in right now, we are at a prime time to use this to our advantage.”
She highlighted how the first sentence of the Code spells out, in no uncertain terms, an agent’s “pledge…to protect and promote the interests of their client.”
And that’s exactly what written buyer agreements are meant to accomplish. Betts recommended going a step further and helping buyers strategize a plan if a seller chooses to not offer buyer agent compensation.
Talking to sellers
On the other side of the transaction, Betts explained how listing agents should inform a seller that a buyer may seek compensation for their agent.
“So, Mr. Seller, you can expect to receive offers where the buyer is going to request that either you take care of paying that representation fee, a portion of that fee or you issue them a concession” so they can use that concession however it is needed, Betts told the audience. “Friends, that dialogue’s working, and I promise you sellers are loving it.”
If sellers don’t initially choose to cover buyer agent fees, that doesn’t mean they aren’t open to negotiation down the line. As real estate pros know, a client can change their mind.
Three months into the practice changes, Betts said, it’s business as usual.
“Our sellers are enjoying the choice of how to handle decisions about how to market their property or contribute to compensation or concessions,” Betts said. “On the buy side, we are not having issues with our buyers signing or understanding our fee or value.”
Meanwhile, Franz Barnes expressed optimism.
“I don’t want [agents] to see buyer agreements as obstacles,” Franz Barnes said. “I see them as opportunities.”
They’ve helped her reprioritize buyer consultations, something she says can be rushed or overlooked.
“Over the years, I’ve served thousands of clients, sold over $375 million in real estate, and built a business on repeats and referrals,” she said. “But even with that success, I can admit that without written agreements I sometimes rushed into the home search, overlooking the depth and intention required to truly connect with and guide my clients.
Incorporating written agreements changed that entirely. It pushed me to refine my buyer consultation process and get crystal clear on my promise and value proposition. I now spend more time with each buyer upfront, creating the space to listen more, talk less, and ask thoughtful questions—ensuring I truly understand their unique needs and goals.”
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Author: amyc