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Tips and Best Practices:

Do & Don'ts When Working With Buyers

The National Association of REALTORS® (NAR) has issued guidelines to help real estate professionals navigate recent practice changes when working with buyers. Key recommendations include:

Dos:

• Clearly Demonstrate Value: At the beginning of the relationship, emphasize your unique expertise and the benefits of working with a REALTOR®, who is obligated to act in the client's best interest under the REALTOR® Code of Ethics.

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• Explain Written Buyer Agreements: Clarify that these agreements outline the services you will provide and the compensation for those services. Inform buyers that such agreements are often required before touring homes and ensure they understand the terms before signing.

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• Be Transparent About Compensation: Inform buyers that while they can request the seller to cover their agent's fees, not all sellers may agree. Ensure buyers understand their potential financial responsibilities, including that current FHA rules prohibit financing agent compensation through a mortgage.

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• Advocate for Buyer’s Interests: As a REALTOR®, you have an ethical duty to serve your client's best interests. Discuss all available options with buyers, including the possibility of requesting seller concessions to cover agent fees.

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• Comply with State and Local Laws: Stay informed about additional requirements or regulations that may apply based on state law and local practices.

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Don'ts:

• Misrepresent Agreements: Accurately explain the nature and purpose of written buyer agreements. Ensure all communications are honest and truthful, in line with the REALTOR® Code of Ethics.

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• Circumvent Practice Change Requirements: Avoid creating agreements designed to bypass new requirements. Compensation terms should be clearly defined and agreed upon in good faith, without open-ended or ambiguous terms.

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Adhering to these guidelines will help maintain ethical standards and ensure compliance with recent industry changes.