What You Need to Know About Buyer Agent Agreements

Hi! I’m Lora Cusumano, President of the National Association of Exclusive Buyer Agents or (NAEBA). If you’re watching this video, you’re likely getting ready to buy a home, and I want to assure you that you’re in the right place. The home-buying process can seem a bit daunting, especially when it comes to how compensation works for your buyer’s agent.

Recently, on August 17th, 2024, there was a major settlement in the Burnett/Sitzer case involving the National Association of Realtors also called NAR. This settlement is changing how real estate transactions are handled, especially regarding agent compensation. I understand this might feel a bit confusing or worrying, and that’s why I’m here to help clear things up.

A common concern for buyers is the idea of having to pay a commission to their agent. Some people think they might save money by going directly to the listing agent. But here’s an important point: if you work with a listing agent, they are required to represent the seller’s best interests and not yours. This also applies to any agent from the same office. This situation is called dual or designated agency.

At NAEBA, we strongly recommend avoiding dual and designated agency because of the conflicts of interest. Listing agents and their colleagues are focused on getting the best deal for the seller. When you work with an Exclusive Buyer Agent, like our members, you get someone who is dedicated to representing only your interests— no conflicts, no divided loyalties, just complete dedication to you, the buyer.

This isn’t new to us. While the real estate world is adjusting to these changes, NAEBA and our members have been specializing in exclusive buyer agency for over 30 years. Our approach has always been transparent, with clear buyer agent agreements that ensure there’s no confusion about who we represent or how we are compensated. We are not your typical agents; we focus solely on helping buyers, using our expertise to get you the best deal possible. Our mission at NAEBA is simple and powerful- We promote true exclusive buyer agency through education and advocacy, protecting real estate consumers from unethical and potentially damaging practices. We adhere to the highest level of professional standards in the industry, and our members are committed to following NAEBA’s strict Standards of Practice and Code of Ethics— standards that go above and beyond what’s required by NAR. When you choose a NAEBA member, you’re not just hiring a real estate agent; you’re partnering with someone who will be with you every step of the way. From making offers to evaluating properties, handling paperwork and negotiating on your behalf, our members are here to make your home-buying journey smooth and stress-free.

I encourage you to explore our website, listen to our podcasts, and attend one of our home-buying webinars. These resources will help you understand who we are and why our members are so committed to avoiding conflicts of interest and doing what’s right for you, the home-buying consumer. When you see the NAEBA logo on our member’s websites, think of it as a guarantee of our unwavering loyalty to you, the buyer. It’s a promise that our fiduciary relationship with you, our buyer clients, will never change. As you start your home-buying adventure, remember: use an Exclusive Buyer Agent, a brokerage that never takes listings. Only we can guarantee that our loyalty is always and only, to you.

Thanks for watching, and on behalf of NAEBA, I wish you the best of luck in finding your perfect home!