Real Estate class notice settlement includes new buyer’s agreement

PEORIA, Ill. (WMBD) — The world of real estate will soon look a little different.

Starting on Saturday, Aug. 17, homebuyers and their agents will have to enter buyer’s agreements before any house can be shown, along with other rules. The biggest change: fully negotiable commission.

The concept isn’t new. But what is new is that it must be signed by the home buyer before viewing any properties. Previously, such an agreement could have been signed anytime during the process.

“It’s just laid out. When they sign that contract, it’s laid out in the verbiage, here’s what percentage I’m willing to pay my my agent or what flat number that I’m willing to pay,” said Bill McCarthy, the president of Peoria Area Association of Realtors. “But at the same time, that buyer can also, when they write an offer on a property, ask the seller to pay it.”

The new buyer’s agreement marks a new era for contract negotiation.

“It’s more important than ever that both buyers and sellers spend a lot of time carefully selecting an agent who is both honest and competent,” said Stephen Brobeck, a senior fellow of Consumer Federation of America. “It is essential that both buyers and sellers request the contract they’re going to have to sign upfront so they have time to read, understand it.”

Commission rates have always been negotiable, and the new buyer’s agreement will now make sure a rate is agreed upon before entry to the first house shown.

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