THINGS BIG BOX REAL ESTATE AGENTS MAY NOT TELL YOU THAT CAN COST YOU TENS OF THOUSANDS OF DOLLARS!

Since the settlement in 2024 by the National Association of Realtors, the rules have changed with respect to how BUYERS compensate agents. You, the Buyer, decides the amount that you want to pay an agent to represent you. No longer is this preset by the Seller. Yes, the Sellers in the past have set the amount of compensation that is to be paid to your real estate agent without you knowing or agreeing to the amount. What did the Seller care? They were just adding it to the amount that you paid in the form of a higher price. Now, you get to decide how much that you want to pay for your agent. Do you really have to pay $10,000 or more? Although you can ask the Seller to add it to the price of the house and pay it at closing, doing that compounds the cost if you are getting a higher mortgage in the process!

Now, buyers must be told by agents, at the very beginning of the relationship (before viewing homes), the total amount that the agent will be charging in connection with their representation. They cannot attempt to charge one fee for showing homes (or nothing at all) and, once you find a home, only then tell you their fee for additional services. BUYERS do not need to agree to pay a commission to any agent in order to see the inside of the home (Contact the Seller directly if a Seller’s agent attempts to do this, the Seller is paying them to sell the home). BUYERS can buy a home that is listed for sale without hiring an agent at all or elect to hire an attorney at more cost effective rates. And be aware, any compensation agreement must be in writing to be valid.

Our company can give you options and explain to you how to obtain quality services and the representation that you want and need, while SAVING THOUSANDS!.

SCARE TACTICS BY REAL ESTATE AGENTS TO “UNLAWFULLY STEER” BUYERS TO HIGHER PRICED COMPANIES

The Consumer Financial Protection Agency (CFPB) has been cracking down on real estate companies and their agents who push consumers to obtain services from providers, like closing or mortgage companies, that the agent recommends. A common tactic is to scare unknowing consumers to use the agent’s choice of closing/mortgage company is to warn them that the settlement could fail if they choose competing lenders. The CFPB has filed a lawsuit against Rocket Homes Real Estate, LLC an other for this violation.

Additionally, the recommended companies can be part of an affiliated relationship, in which the agent receives a benefit, monetary or otherwise, without being meaningfully disclosed up front but only given such disclosures, if at all, after the consumer has committed to the referred company.

WARNING

BUYERS- DO NOT AGREE TO USE A RECOMMENDED CLOSING COMPANY UNTIL YOU FULLY UNDERSTAND THE RAMIFICATIONS OF THE CHOICE. YOU ARE PAYING FOR THE TITLE INSURANCE- NOT THE AGENT- IT IS YOUR CHOICE-NOT THEIRS!