Lauren's Blog

NAR Settlement Explained + 104 Things a (Great) Buyer’s Agent Does

We’re sure you’ve all heard about the lawsuit against the National Association of Realtors (NAR) going into effect this August. With all the noise and confusion in the media, it’s hard to separate fact from fiction.

Luckily, over here we cut through the bullshit and give it to ya straight.

Let’s dive right into how the NAR settlement changes the playing field for homebuyers PLUS a full breakdown on exactly what a (great) buyer’s agent does for you.

If you’re new here, I’m Lauren Goché — a Portland realtor with a decade of experience backing me up. Which means I’ve weathered more than a few market shifts over the course of my career, and specialize in making sure you can make the most of the market for your goals. Read more about me here.

The NAR Settlement and Its Implications for Buyers

This lawsuit was essentially settled as a preventative measure against potential future legal battles. Its aim was to bring more transparency to real estate commissions — which is fair, there hasn’t been much.

Traditionally, there’s been this unwritten rule: the seller pays both the listing agent and the buyer’s agent fees, typically ranging from 4.5% to 6% of the sale price. Then, the seller’s agent splits that commission with the buyer’s agent. The seller paying both fees kept the whole process more affordable to buyers, especially first-timers.

The NAR settlement essentially formalizes what was already happening: the seller isn’t obligated to pay the buyer’s agent. Even though there are plenty of reasons a seller SHOULD still pay a buyer’s agent’s commission, now that this is all out in the open, some will decide not to.

All this means a lot of added paperwork, room for more lawsuits, and buyers possibly paying for their own agent or skimping of representation all together because they simply can’t afford it.

If you’re looking for more info, or are a seller wondering how this settlement impacts you, I highly, highly recommend you check out my favorite breakdown of the situation: Beyond the Headlines: Understanding How Proposed Changes in Real Estate Commissions Will Actually Impact You as a Buyer or Seller

What is a buyer’s agent?

Believe it or not, buyer’s agents weren’t a thing until the 1980s. Before that, buyers were pretty much on their own, or they had to rely on the seller’s agent who had conflicting interests. Buyers ended up taking legal action against sellers and seller’s agents, claiming they were being misled.

So, buyer’s agents were created to protect the buyers, because buying a house is f**king complicated. Real estate is an ever-changing beast and unless you’re knee-deep in it like us, ya just don’t know what ya don’t know

Is this going to make housing more affordable?

You might have come across the argument that this settlement will drive down housing prices. But let’s call a spade a spade here – we really just don’t see that being the case.

In reality, the burden will fall on the homebuyer, who might end up footing the bill for their own agent fees on top of their down payment and closing costs. And as we know, housing affordability is already REAL tough, especially for first-time homebuyers.

Your Three Options as a Homebuyer

Even with this settlement, plenty of sellers will still cover the cost of your representation. If the seller is paying your buyer’s agent commission OR your buyer’s agent negotiates for some or all of the commission payment from the seller, then you’re good. Just keep in mind commission is already baked into the house price – it’s been that way all along.

But what if you’re eyeing a house and the seller isn’t covering the buyer’s agent fees? Here are your options:

Option 1: Use a buyer’s agent and pay the commission yourself.

This can certainly add to your stress, especially if you’re already pushing the limits of your budget to secure a home. Purchasing a new house often means counting every penny, which can be legitimately anxiety-inducing, even if it’s not your first rodeo.

Luckily, if you can’t afford to pay this out of pocket, most of the time, we can discuss rolling it into your loan.

Option 2: Don’t use a buyer’s agent, and represent yourself.

Representing yourself might seem like an easy way to save some cash, but not having a buyer’s agent is like getting arrested and representing yourself in court – Good luck with that.

It’s simply not worth the risk. You shouldn’t gamble on such a significant purchase without proper representation. And if you’re curious about the extensive value a buyer’s agent brings to the table, we’ve compiled a list detailing the 104 things we handle for our buyers — just keep scrolling!

Option 3: Have the listing agent represent you.

This is essentially the same as you getting arrested and the prosecutor is also your defense attorney… Yeah, that’s not going to be in your best interest either.

A listing agent’s first responsibility is always going to be to their seller. Even if they have a legal duty to treat buyers fair, there’s an inherent conflict in representing both sides of the transaction. In the past we’ve seen plenty of unhappy buyers come back and sue those agents who represent both a buyer and seller in a transaction because they got misinformation or taken advantage of.

Bottom line is: You need someone in your corner who’s only fighting for you. Period.

Our Final Verdict?

To any potential buyer, and especially first-time homebuyers, our advice is simple: USE A GOOD REALTOR, now more than ever. Buying a home is probably the biggest financial decision of your life and you deserve a dedicated professional who guides you through the process and fights for your needs.

Whether it’s handling inspections, negotiating prices, or navigating contingencies, when you buy with us, we’ll be fighting in your corner every step of the way – Get in touch.

104 Things a (Great) Buyer’s Agent Does:

Having us as your buyer’s agent means we *literally* don’t stop working for you. Just take a look below:

Have a constantly flexible schedule
Prepare a Buyer’s Guide & Presentation
Strategy Session w/ Buyers to Discuss Goals
Explain Buyer & Seller Agency Relationships
Discuss Different Types of Financing Options
Help guide buyers through financial goals (This sometimes takes years)
Help Buyers Find a GOOD Local Mortgage Lender
Make sure a Pre-Approval Letter from Lender is up to date
Provide Overview of Current Market Conditions
Discuss Earnest Money Deposits
Explain Home Inspection Process
Educate Buyers About Local Neighborhoods
Gather Needs & Wants Of Their Next Home
Keep Buyers aligned in their goals
Explain Recording Devices During Showings
Learn All Buyer Goals & Make A Plan+Pivot
Create and maintain Internal File for Buyers Records
Send Buyers Homes Within Their Criteria
Start Showing Buyers Home That They Request
Schedule & Organize All Showings
Gather Showing Instructions for Each Listing
Send Showing Schedule to Buyers
Years of learning about construction so we know what to steer buyer away from
Look For Possible Repair Issues While Showing
Advise buyer on how much repairs and remodel could cost
Gather Buyer Feedback After Each Showing
Update Buyers When New Homes Hit the Market
Share Knowledge & Insight About Homes and neighborhoods
Guide Buyers Through Their Emotional Journey
Listen & Learn From Buyers At Each Showing
Keep Records of All Showings
Update Listing Agents with Buyer’s Feedback
Discuss Homeowners Associations
Confirm Water Source and Status
Explain Property Appraisal Process
Discuss Multiple Offer Situations
Strategize on how to get an offer accepted in multiple offer situations
Provide Updated Housing Market Data to Buyers
Inform Buyers of Their Showing Activity Weekly
Update Buyers On Any Price Drops
Discuss MLS Data With Buyers At Showings

(Hold on—we’re almost halfway there…)

Find the Right Home for Buyers
Determine Property Inclusions & Exclusions
Prepare Sales Contract When Buyers are Ready
Educate Buyer’s On Sales Contract Options
Determine Need for Lead-Based Paint Disclosure
Explain Home Warranty Options
Update Buyer’s Pre-Approval Letter
Discuss Loan Objection Deadlines
Choose a Closing Date
Verify Listing Data Is Correct
Review Comps With Buyers To Determine Value
Communicate with listing agent about submitting offers
Prepare & Submit Buyer’s Offer to Listing Agent
Negotiate Buyers Offer With Listing Agent
Amend offer if need be
Execute A Sales Contract
Discuss and explain seller’s Disclosures
Once Under Contract, Send to Title Company
Once Under Contract, Send to Lender
Coordinate Earnest Money Deposit
Deliver Copies to Mortgage Lender
Obtain Copy of Seller’s Disclosure for Buyers
Deliver Copies of Contract/Addendum to Buyers
Obtain A Copy of HOA Bylaws
Obtain A Copy of HOA meeting minutes
Advise buyer on lawyers to review HOA docs
Keep Track of Copies for Office File
Coordinate + schedule inspections with Buyers
Communicate Inspection schedule with listing agent

(Ya still there? We still have 34 more…)

Provide inspectors with buyer information
Search through city records for permits
Check see if there is records for a buried oil tank
Look to see if house is in a historic district
Review disclosures to see if there are any known issues to investigate further and schedule any necessary specialty inspections (i.e. foundation, HVAC, oil tank soil sampling, cesspools, etc.)
Meet Inspectors At The Property
Use our years of knowledge to discuss inspection findings with buyers
Review Home Inspection Reports with Buyers
Schedule contractor visits for bids for needed repairs to use in negotiations
Staying in constant communication with all parties during the inspection period
Coaching buyers through the pros + cons of asking for repairs vs. credits, which repairs to prioritize, etc.
Negotiate Inspection findings with seller’s agent
Get All Agreed Upon Repair Items in Writing
Verify any Existing Lease Agreements with tenant occupied properties
Check In With Lender To Verify Loan Status
Check on the Appraisal Date
Negotiate Any Unsatisfactory Appraisals
Coordinate Closing Times & Location
Make Sure All Documents Are Fully Signed
Verify Title Company Has Everything Needed
Remind Buyers to Schedule Utilities
Make Sure All Parties Are Notified of Closing Time
Work with escrow to resolve any Title Problems Before Closing
Receive and Review Closing Documents
Review Closing Figures With Buyers
Confirm Repairs Have Been Made By Sellers
Perform Final Walk-Through with Buyers
Resolve Any Last Minute Issues
Be in constant communication with buyers during closing week
Provide Home Warranty Paperwork
Give Keys and Accessories to Buyers
Close Out Buyer’s File + Maintain Docs and Records
Check in with buyers post closing
Provide on-going support (contractor, landscaper, painter, fence, appliance referrals…) after closing.