Understanding Buyer's Agency Agreements - What You Need to Know

You may have heard that changes to our state laws in New Jersey regarding real estate are coming to homebuyers starting August 1, 2024.  I'm here to help put your mind at ease and answer any questions that you may have. 

Beginning August 1, before a buyer sees a home with an agent, they will be required by the State of New Jersey to sign a buyer agency agreement. 

Don’t worry…buyer’s still have control of who they choose to represent them. The agreement is designed to clarify the relationship between you and your agent, including:

Terms of Agreement

• Agent Compensation: The agreement will clearly outline the agent’s compensation, ensuring you know upfront what services you are receiving and what your agent is being compensated. 
• Buyers can have an exclusive buyer’s agency agreement with an agent for a specified time period with a specified area or just for one house. 
• If you prefer to ONLY see homes where the agent's compensation is covered by the seller, this option will be available to you. This will ensure that you are not agreeing to cover any out of pocket fees. However, even when the seller is not agreeing to cover compensation upfront, this can always be negotiated as part of the transaction, so that you will not have any additional out of pocket expenses.

Cancellation Policy

If you aren’t happy with your agent’s service, you can cancel with 3 days written notice! You’ll have a clear understanding of how to cancel the agreement if needed. However, it will not cancel the agreement for the properties that you have already seen with that agent.

Buyers Have Control

You will have control over what you see, who you work with, and whether you are responsible for any fees. This is an opportunity to carefully choose the right agent who will not only guide you through this process but brings value to the table for you.

Don’t Try to Go It Along! Understand The Value of a Buyer's Agent

Buying a home is one of the most significant financial commitments a person makes. It’s crucial to take your time and select an agent who not only understands the market and the strategies necessary to submit a winning offer, but also one who truly represents your best interests. A buyer's agent does much more than just give you access to homes. They provide valuable insights, education, resources, negotiate on your behalf, smooth out the bumps along the way and ensure that you are informed every step of the way so that you can make informed decisions that are in your best interest.

Want to know more?

Let’s talk! As a Real Estate Advisor and agent with an expert understanding of these new changes, I am here to help you navigate this new landscape. Don't rush this decision. Use this opportunity to make an informed choice about your home-buying journey. Reach out and we will take the time to meet and discuss more about these changes and why choosing the right agent matters more than ever. Please share with friends and family.