CNBNews

Pennsylvania Association of Realtors reminds

consumers about change in the homebuying process

HARRISBURG, PA (September 10, 2024) – The Pennsylvania Association of Realtors reminds Pennsylvania consumers that, if you are going to work with a real estate agent to buy a home, you are now required to enter into a written agreement with a buyer agent before touring a home with that agent. The requirement is part of a set of changes in the homebuying process that went into effect nationally in August.

“Consumers who are now beginning their journey to buy a home are among the first to experience recent changes in the homebuying process,” said Bill Lublin, president-elect of the Pennsylvania Association of Realtors and a Philadelphia-area broker. “A main change is that consumers are being asked to sign a written buyer agreement with the real estate professional they chose to work with. It’s important that homebuyers understand the purpose of buyer agreements and what to expect before signing one.”

Before touring a home with a buyer agent, either in-person or virtually, consumers must now enter into a written agreement with that agent outlining the agent’s services and fees.

Written buyer agreements are not new to Pennsylvania. In fact, the Pennsylvania Association of Realtors encouraged brokers to use written agreements with buyers even before buyer agency was enacted in the Commonwealth in 1999. But signing a written buyer agreement is now a requirement.

The Pennsylvania Association of Realtors offers this guidance for consumers about written buyer agreements:

• You will be asked to enter into a written buyer agreement with your selected real estate professional before “touring” a home with them, either in-person or virtually.
• A written agreement between you and a buyer agent must outline the services the agent will provide and the corresponding compensation.
• The compensation must be clearly defined (e.g., $0, X flat fee, X percent, X hourly rate).
• You should feel empowered to negotiate any aspect of an agreement with a real estate professional, such as the services you want to receive, the length of the agreement and the compensation.
• You should only sign a written buyer agreement that reflects what you have agreed to with your selected real estate professional.
• If you are simply visiting an open house on your own or asking a real estate professional about their services, you do not need to sign a written buyer agreement.

“It is also important to know that not every real estate agent is a Realtor,” Lublin said. “Realtor is a mark of distinction. It means you are working with a professional who is ethically obligated to work in your best interest. This is critical, as a home is by far the biggest purchase a person makes in their lifetime.”

Consumers considering buying a home can learn more and find a Realtor at parealtors.org/whats-new.