We’ve covered the recent legislative changes to buyer agency agreements in our blogs and podcast episodes. But what does that mean for you as a client of T&H Realty Services? In this blog, we’ll walk you through our entire process, from start to finish, and explain the context of why the change in legislation, and our process, is important.
The Changing Landscape: New Laws on Buyer Compensation Agreements
In an effort to increase clarity and fairness in real estate transactions, a new law has been introduced that requires real estate agents to have a signed Buyer Compensation Agreement with their clients before performing any agency duties. This law is a game-changer in the industry, designed to eliminate any potential misunderstandings about compensation and agency relationships between buyers and their agents.
The rationale behind this legislation is simple: to ensure that all parties involved in a real estate transaction have a clear, mutual understanding of their working relationship. For buyers, this means greater transparency and security, knowing that their agent is fully committed to their best interests from the outset. At T&H Realty Services, we fully support this change, as it aligns perfectly with our core values of being client-focused and great communicators.
Your First Step: The Initial Consultation
Every successful real estate journey starts with a conversation. At T&H Realty Services, we believe in the power of a personal connection, which is why our process begins with an initial consultation.
Consider this call similar to one you would have with a listing Agent. This meeting is more than just an introduction. It’s an opportunity for us to understand who you are, what you’re looking for, and how we can best assist you.
During this consultation, we’ll dive deep into your goals, preferences, and any specific criteria you have for your property investment. Are you interested in a particular neighborhood or school district? Do you have a budget range in mind? A property type in mind? What are your long-term investment goals? This is the time for us to learn about your unique situation so we can tailor our services to meet your exact needs.
We also take this opportunity to walk you through the current market conditions, discuss potential challenges, and set realistic expectations. This candid conversation is essential in building a strong foundation for our working relationship, ensuring that we’re all on the same page as we move forward.
The Importance of the Buyer Compensation Agreement
After our initial consultation, and once we’ve established that we’re a good fit to work together, the next step is securing a Buyer Compensation Agreement. This agreement is more than just a formality—it’s a legally binding document that solidifies our commitment to you and outlines the terms of our working relationship.
Under the new law, this agreement must be in place before we can provide any agency duties. This means we cannot perform tasks such as setting up property searches, showing properties, or negotiating offers on your behalf until the agreement is signed. The Buyer Compensation Agreement clearly outlines our compensation structure, ensuring there are no surprises down the road. This transparency is crucial in building trust and ensuring that you feel confident in the services we provide.
What Happens After the Agreement is Signed?
With the Buyer Compensation Agreement in place, we’re fully equipped to get to work on your behalf. Here’s what you can expect:
- Personalized Property Searches: Based on the information we gathered during our consultation, we’ll set up customized property searches tailored to your criteria. Whether you’re looking for a fixer-upper with great ROI potential or a turnkey property in a sought-after neighborhood, we’ll ensure that you only see listings that match your needs.
- Property Showings: We’ll coordinate showings at your convenience, allowing you to explore potential properties firsthand. During these showings, we’ll provide expert insights into each property’s pros and cons, helping you make informed decisions. For our out of state investors or those who prefer a “hands-off approach,” we can also conduct showings virtually.
- Numbers: We’ll provide you a rent range you can expect, and general numbers on make-ready costs. Keep in mind that we are not inspectors, and you should absolutely get a home inspection. However, we will do our best to provide you general numbers – from a cosmetic standpoint – to get the home in rent-ready shape.
- Expert Negotiation: Once you’ve found the right property, we’ll use our negotiation skills to secure the best possible deal for you. From crafting competitive offers to navigating counteroffers, our goal is to ensure that you get the best value for your investment.
- Closing and Beyond: The closing process can be complex, but we’ll be with you every step of the way. We’ll coordinate with lenders, inspectors, and other parties involved, ensuring that all aspects of the transaction are handled smoothly and efficiently.
Why T&H Realty Services
At T&H Realty Services, we bring years of experience, deep Indianapolis market knowledge, and a client-first approach to every transaction. We’re not just here to help you buy a property—we’re here to help you make a sound investment that aligns with your long-term goals.
We are also a one-stop-shop for investors, so it doesn’t end there. Our team can also help you renovate, market, lease, and manage your home.
Moving Forward Together
At T&H Realty Services, we’re not just another brokerage or property management company; we’re your partners in property investment. Our approach is built on trust, expertise, and a shared commitment to your success. The Buyer Compensation Agreement is a crucial step in this journey, ensuring that we’re fully aligned and ready to move forward together.
