Changes In The Real Estate Market - What You Need To Know!

Navigating the real estate market can be a bit daunting, especially with the recent changes that will be coming in a few days!  These changes will impact both buyers and sellers in various ways.  Let's explore how---

FOR BUYERS

If you're planning to buy a home, there's a new process to follow.  Before you start looking at houses, you will have to sign a buyer agency agreement and have a buyer consultation with your Buyer Agent.  During this consultation, your agent will go over the agreement, which will outline the compensation your agent expects to receive when you purchase a house.

You might agree to pay your agent's professional fee, but what if you don't have the extra funds?  The additional costs on top of closing costs from the lender, attorney fees, title costs, moving expenses and the down payment can be overwhelming for many buyers.  So, what are your options?

• Limit Your Search:  You can inform your agent that you only want to see homes where the seller is willing to pay the buyer agent compensation that meets your agent's expectations.  The downside is that this could limit the number of homes your agent can show you.
• Request Seller Assistance:  You could ask the seller to cover some or all of your agent's compensation.  However, there is no guarantee that they will agree.  If the seller declines and you still want the house, you may now end up as an unrepresented buyer.
• Consider Dual Agency:  You could see if the listing agent is willing to assist you.  This means entering into a dual agency situation, where the listing agent represents both parties.  However, this can limit the agent's ability to advise either party fully, as they must act as a neutral transaction coordinator.

FOR SELLERS

For sellers, these changes mean being prepared for potential requests from buyers to cover their agent's compensation.  This could influence negotiations and the overall selling process.

SO WHAT DOES A BUYER AGENT DO FOR THEIR PROFESSIONAL FEE?

A buyer agent plays a crucial role in guiding their client through the home-buying process, ensuring contracts are completed correctly, negotiating offers, and managing various aspects of the transaction.  With the new changes, if the buyer's agent is not compensated by either party, buyers may find themselves unrepresented or relying on a listing agent acting as a dual agent.

Market Insight and Projections

A Buyer Agent offers a deep dive into current market conditions and future trends through a Market Analysis.  This is crucial for understanding what's happening in your desired area.  Unlike online sites, which can be hit or miss, a Buyer Agent provides accurate and reliable information.  For sellers, this means accepting offers from well-informed buyers, reducing the risk of losing money or facing appraisal issues.

Understanding Fair Housing Laws

Buyer Agents are well-versed in state and federal Fair Housing laws, ensuring you stay compliant.  While attorneys can also help, they can come with hefty fees and might not be available when you need them.

Confidentiality Assured

Sharing sensitive information can be uncomfortable.  Buyer Agents handle this professionally, ensuring your personal information remains confidential.

Contract Expertise

Buyer Agents thoroughly review and explain contract clauses and addenda, helping you understand all the details.  This level of service isn't possible in dual agency situations, where one agent represents both sides.

Disclosure of Material Facts

Virginia is a "buyer beware" state, meaning sellers aren't required to disclose all material facts.  Buyer Agents make sure you're informed of any known issues, giving you peace of mind.

Immediate Listing Notifications

Buyer Agents notify you of new listings right away, including "Coming Soon" properties not yet visible online.  This gives you a competitive edge in a fast moving market.

Quality Lender Recommendations

A Buyer Agent can recommend reputable lenders, helping you avoid those who might cause loan denials at the last minute.  This saves you time and helps you secure the property you want.

Ensuring Proper Disclosures

Buyer Agents ensure all required disclosures are made and help review HOA documents.  This is crucial, as sellers might not know all the necessary disclosures, and attorneys might not be available for timely advice.

Information on Purchase Incentives

There are various purchase incentives out there, often with specific qualifications.  A Buyer Agent can identify these opportunities and explain how they can benefit you, which sellers might overlook.

Crafting Desirable Offers

A Buyer Agent advises on making appealing offers based on market conditions.  This guidance is especially important in dual agency situations where listing agents can't provide this advice to both parties.

Explaining Contract Contingencies

Buyer Agent clarify contract contingencies like inspections, financing, and appraisals.  This is essential since dual agents can't offer this advice to both sides.

Handling Multiple Offers

In competitive markets, Buyer Agents can help you structure your offer to stand out in multiple offer situations.  Dual agents can't effectively represent both sides in this scenario.

Managing Repairs

If issues arise, Buyer Agents ensure agreed-upon repairs are complete correctly.  Dual agents might fact conflicts of interest here, making it unclear who they truly represent.

Addressing Low Appraisals

Buyer Agents help navigate low appraisals, advising on whether to appeal or adjust the price.  They guide you through the complexities, especially with VA or FHA appraisals, keeping the sale on track.

Managing Earnest Money Deposits

Buyer Agents handle earnest money deposits, ensuring they're secured and properly managed.  This avoids potential mishandling by unrepresented buyers.

The Value of a Good Buyer Agent

A well-compensated Buyer Agent works tirelessly behind the scenes to ensure a smooth transaction from offer to closing.  Their expertise is invaluable, especially in a market where unrepresented buyers or dual agency situations might lack necessary support and knowledge.

These are just a few ways a Buyer Agent can make your journey - whether it is a buying or selling journey - from accepted offer to a successful closing much more manageable.

I know that you may have a lot of questions about these changes that will be here before we know it - feel free to get in touch and let's sit down and discuss the pros and cons of having a Buyer Agent involved in the transaction - whether you are a home-buyer or a home-seller!