Real Estate Guidelines for Buyers and Sellers in Virginia
Here are answers to the frequently asked questions stemming from the Department of Justice rulings (effective November 2024)
If you have not bought or sold real estate in a while — or in a year or more — then you may be intrigued at some of the changes you will find when you go to sell or buy your next property. Some of this is not new for Virginia residents. (We have always required a Buyer’s Agreement to show property, for example.) But some things may be a little surprising. Read on to learn more about today’s real estate landscape, and how it might impact your experience.
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Q: As a buyer, am I required to sign a buyer broker agreement and agree to compensate my agent before seeing homes?
A: Yes. Since 2012, the General Assembly of Virginia has required a signed buyer broker agreement. Effective August 2024, NAR’s code of ethics requires an agent to have a signed buyer broker agreement before an agent may show you homes.
Q: How do purchasers’ agents get paid?
A: While compensation has always been negotiable, Effective November 12, 2024, all commissions are negotiated in the terms of the purchase agreement between the seller and buyer. This is similar to sales price, inspections, appraisal terms, and other items. Listing firms no longer offer commission to purchaser’s agents.
Q: Can I increase the offer price or offer other terms and ask the seller to pay my buyer broker fee?
A: Yes.
Q: If the seller counters back on paying all or any the buyer broker commission, what options do we have in response?
A: There is a strategy for positioning and presenting all offers; however, there are some basic options.
Option #1: A buyer can counter back and negotiate other terms or hold firm.
Option #2: A buyer can request a different amount and pay the difference to the buyer broker at settlement based on the signed buyer agreement.
Options #3: If a seller refuses to pay any portion of the commission, a buyer can pay the full commission indicated in the Buyer Agreement at the time of settlement.
Q: Do I have to use a buyer’s agent to represent me in a transaction?
A: No. That is certainly your right as a consumer, but we suggest you talk with an experienced real estate attorney to fully understand the process and a licensed agent in the Commonwealth of Virginia.
Q: Do agents see listings in MLS before Zillow, Realtor.com, and other sites?
A: Yes, “Coming Soon” listings in CVRMLS DO NOT syndicate to 3rd party sites, which allows our agents to set up appointments in advance and provide details before other buyers see a property on larger sites.
Q: Is there a difference between firms and agents to represent me?
A: Yes, SRMF, Real Estate agents are trained at a very high level on a regular basis on current topics. We have four brokers with a combined total of 110 years of experience available to assist with questions, in addition to River Title attorneys, lenders, insurance providers, and a network of contractors and inspectors, all serving as resources to help buyers make informed decisions.
Q: Do all agents use the same forms and addenda?
A: No, as we navigate shared MLS systems, agents in other markets promote and sell in our market that do not have the same processes, forms, or other details. Processes and terms are different depending on the listing firm or a seller.
Q: How do SRMF agents differ from other firms in their negotiation skills?
A: Our agents at SRMF have dedicated an extensive amount of time training to ensure that our clients have the best experienced agents as their advocates in this process. Not all transactions are the same, and we’re equipped with the knowledge to work in any scenario. We also have the collective experience (noted above) to rely on if there’s an unfamiliar situation.
Not all agents are the same. Make sure the agent you select to represent you is well trained and up-to-date on all the changes. It helps ensure success!