As seen on New Mexico Living on KRQE in Albuquerque, NM September 17, 2024

https://www.krqe.com/new-mexico-living/talia-freedman-and-co-offers-guidance-for-real-estate-buyers-in-a-dynamic-market/

Question 1: Recap the situation.

Answer:
There are new rules for any broker who is a member of the National Association of Realtors that took effect on August 17th that state that 

1 – You must have a signed compensation agreement to see a house unless the listing is represented by someone in the same company as the Broker who would be doing the showing and 

2 – No compensation will be listed in the MLS which essentially makes it “negotiable” between the buyer and seller about who pays the compensation. 


Question 2: How does a buyer pick a broker? 

Answer:
This is an important question. First and foremost you should work with someone you trust to both have your best interest at heart and also someone you feel comfortable talking to. But you might not be able to decide if you want to work with someone from one phone call. If you’re not sure who you want to work with or are interviewing Brokers, maybe set up appointments to meet at their office to discuss any questions you may have, discuss their compensation, and see if it feels like a good fit. Another option is to ask them to show you a house or two. Yes, you’ll have to sign an agreement but you could ask to just sign one for one or two houses or for a day or a weekend to see if it’s a good fit. This is the biggest purchase of most people’s lives and it’s reasonable to interview realtors before deciding who to work with for such an important purchase. 

BUT when you DO find “the one” be prepared to sign a long term contract with them. If you want to work hard for you they deserve to know that you’re committed to working exclusively with them. 


Question 3: What if a buyer doesn’t want to sign an agreement at all?

Answer:
If a buyer absolutely does want to sign with anyone they do have a few options. 

1 – If it’s just that they don’t want to sign to see houses, they can go to open houses or call the listing broker or listing office to see each house. But if they want a broker to represent them in the princess they’ll need to sign an agreement at least before writing an offer. 

OR – Though I only recommend this for the most savvy or confident buyer, they can represent themselves. 


Question 4: What if they decide they DO want to represent themselves?

Answer:
If a buyer feels confident enough to represent themselves they need to know a few things: 

1 – The listing broker works for the seller not for you. Even if they give you paperwork to be helpful, they are not going to work for you for free and they might not even be allowed to work with you depending on the terms in their listing agreement. 

2 – Anything you tell the listing broker they will share with the seller. They do not owe you privacy. They only owe you the most basic “broker duties” which are the same things they owe to any member of the public or other brokers. 

3 – The final thing to know is this is likely the biggest purchase of your life and unless you’re an experienced buyer it could cost you more than you would have spent on compensation from not having a skilled advisor to guide you through the process and help you strategize.