Moving Forward

I hope you are enjoying a sun-kissed, restful summer. While I'm sure you have been spending time outside in our beautiful weather, you may have also seen the news or followed the real estate changes on social media. Some stories have correct information while others seem to exaggerate or have the facts completely wrong. This month I thought I'd cover the general changes. 

First and foremost, I have and will continue to provide full-service to my clients. There will be brokerages and agents who will provide limited service with varying commission agreements. This has always been the case. Consumers have a choice in representation - full-service or limited representation. I like to think of it as Supercuts or a hair salon. Both offer haircuts but at differing levels. The important thing to know is that you have a choice.

Secondly, if you are selling your home, the compensation to the buyer's broker will not be in the MLS. We will be discussing the commission or compensation you agree to pay my brokerage. Then we will discuss the amount of compensation/commission you would like to offer the buyer's broker/agent. In the past, this has been a lump percentage that is divided between the seller's broker/agent and the buyer's broker/agent. We have discussed this split but now the two amounts are separated on different documents. The media has implied or even out-right stated that buyer's agents will no longer be paid by the seller. This is a possibility. However, it is still a good practice to offer this compensation to the buyer's broker as the buyer tends to have many other costs such as down payment, loan costs and closing costs. Please know we will spend time talking through the many options when it's time to list your house. 

Finally, I will ask all potential buyers to sign a representation agreement. I have used the Buyer-Broker Employment Agreement throughout my entire career. The signing had taken place nearer the time when the buyer was ready write an offer on a property. The new regulations require these to be signed before showing a property. There are 3 different Agreements each with varying time periods and conditions. Please let me assure you that we will discuss the best option for you at the time you are interested in looking for a house. The media has called these forms "contracts" and to a degree they are contracts. However, I prefer the term "representation agreement". Negotiating is a part of buying a house. This includes purchase price and terms as well as my compensation. This is the most misunderstood part of the new regulations so please do contact me with questions. 

While there will be some hiccups as we all navigate through the changes, please know that my commitment to you remains the same. I promise to provide exceptional service to each of you as your trusted agent.

One more exciting thing..... Realty Executive of Flagstaff is now Realty Executives of Northern Arizona! This new name better reflects the communities we serve. Along with this new brokerage name, I have changed my website to HighlandLivingAZ.com. 

Please don't hesitate to contact me if you have any questions or if you would like to sit down with a cup of coffee and discuss the changes or our local real estate market.