NAR Consumers: REALTORS® Put Clients' Interests Above Their Own

A REALTOR® is a special kind of real estate agent: one who follows the National Association of REALTORS® (NAR’s) strict Code of Ethics, including the first and primary pledge to protect and promote the interests of their clients. This obligation means that a REALTOR® cannot make decisions or provide representation in a way that puts their own interests or commissions ahead of their clients’ interests.

 

What does it mean for a REALTOR® to act in a BUYER’s best interest? A REALTOR® has an ethical duty to tell a buyer about every home available for sale that meets their criteria, which is exactly what we do. That means that REALTORS® will let you know about all available homes, regardless of whether the seller or listing broker is offering compensation to your buyer’s agent, and even if compensation offered by a seller or listing broker is less than what you agreed to pay your agent in your written buyer agreement.

 

What does it mean for a REALTOR® to act in a SELLER’s best interest? A REALTOR® should explain to their seller the benefits and costs of the various types of marketing that can be done for a listing, and how potential buyers might respond to such marketing. A REALTOR® is ethically prohibited from telling a seller that their home will be hidden from buyers unless the seller pays a particular type or amount of compensation.

 

What is wrongful “steering”? The REALTOR® Code of Ethics prohibits “steering” buyers toward homes because the REALTOR® will be paid more, or away from homes because the REALTOR® will be paid less. Similarly, the REALTOR® Code of Ethics prohibits a REALTOR® from telling a seller that buyers will be “steered” toward homes because the REALTOR® will be paid more, or away from homes because the REALTOR® will be paid less.

 

How do written agreements protect me from steering? As of August 17, 2024 (1st of August in Metro Phoenix), you will be asked to sign a written buyer agreement before touring a home with the professional you want to work with. NAR’s ethical rules have long encouraged REALTORS® to enter into written agreements with their clients because these agreements promote clarity and transparency. They also help protect you from wrongful “steering” by specifying the amount of compensation the REALTOR® will receive and the services they will provide. Since a broker working with a buyer receives the amount the buyer has agreed to, the amount of any offer of compensation is irrelevant to the buyer-broker’s compensation.

 

Where can I learn more about buyer agreements? Learn about why you’re being asked to sign a written buyer agreement from my other blogs and articles at JasonPetersonRealtor.com or simply give me a jingle at 602-517-4463 or write to me at Mail@JasonPetersonRealtor.com.

 

What can I do if I think a REALTOR® is violating NAR’s Code of Ethics? If a REALTOR® acts in a way that places their interests before yours, this is a violation of NAR’s Code of Ethics and should be reported to your state or local REALTOR® Association for investigation and potential disciplinary action.

 

✅ Please visit facts.realtor for more information and resources, and consult your real estate professional or attorney for details about state law where you are purchasing a home.

 

📣 REALTORS® are members of the National Association of REALTORS®

 

🎬 NAR Consumers: REALTORS® Put Clients' Interests Above Their Own
📚 Welcome to the Future of Residential Real Estate (Commissions Decoupled)
📚 Then and Now: Decoupled Commission and New Flow of Compensation
🔎 View the ‘Buyer-Broker Exclusive Employment Agreement’ example.
🔎 View the ‘Buyer-Broker Agreement to Show Property (Buyer)’ example.
🔎 View the ‘Tenant-Broker Exclusive Employment Agreement’ example.
🔎 View the ‘Buyer-Broker Agreement to Show Property (Tenant)’ example.
📚 Homebuyers: Here's What the NAR Settlement Means for You
📚 Home Sellers: Here's What the NAR Settlement Means for You

 

📆 Schedule time with me to address any questions and concerns about buying, selling, and renting residential real estate in the Valley of the Sun (Metro Phoenix). 🏠 We'll get you where you need to go! 🚀

 

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