9 Buyer Agent Problems from New NAR Changes

Hey real estate agents, you know the drill: the real estate industry is constantly shifting, and the latest NAR changes are shaking things up big time, causing many buyer agent problems.

This blog is going to shine a light on the new NAR change announced in March snags that are popping up because of these changes—snags you need to know. Plus, we’ll toss in some savvy tips to dodge these potential career wreckers. So let’s get to it. Here’s your handy dandy index:

Buyer Agent Problem #1: Listing Agent Contact Advantage

Here’s the scoop: Because of the NAR changes, more home buyers are skipping the buyer agent and beelining straight to listing agents. Why? They’ve caught wind that they don’t need a buyer agent to check out a house.

So, what happens when these eager buyers hit up listing agents to open doors for them? Well, the cool listing agents are staying in their lane and saying, “Nope, I don’t cover buyer agent duties. Go find one.”

But some listing agents, where it’s legal, are scooping up these buyers with dual agency representation – you know that type of representation that really results in no representation but costs the same as a buyer agent. And, other listing agents are encouraging buyers to sign a simple unrepresented buyer agreement just so the buyers can take a peek inside the house.

Think buyers will quickly sign these agreements without thinking much about it?  Yes, of course, they will. They want into the house and signing seems like no biggie! Except it is.

Here’s why. Many listing agents charge their sellers an extra fee to handle unrepresented buyers – they aren’t going to do buyer agent work for free.

If a buyer signs an unrepresented buyer agreement, then sees the light and hires a buyer agent to work the deal, depending on the listing agreement, that buyer might get slapped with both unrepresented buyer fees and buyer agent fees. Talk about a financial mess for buyers!

What can you do?

Make some noise about this. Tell everyone that these unrepresented buyers are still coughing up cash through hidden fees tucked away in contracts they can’t see. They’re not saving what they think and they’re giving up a lot of buyer agent advantages.

Buyer Agent Problem #2: Listing Agent Open House Edge

Unfortunately, direct phone calls from home buyers to listing agents are not the only way listing agents get the upper hand with the new NAR changes. Their open houses pull in loads of potential buyers too.

Here’s another trap for buyers. Unscrupulous or naïve open house agents (who are not always the listing agents) may lead visitors into thinking they need to sign a representation agreement right then and there to tour the place.

Not true! Since the new rules don’t apply to seller agents (or any agent sitting at an open house), no one needs to sign anything to stroll through an open house.

But if a house hunter wants the lowdown on some insider info about the property, an open house agent might say, “Sorry, can’t share that unless you sign up with me.”  Good for home buyers? No way!

Home buyers should take the time to find the best agent to represent them. Signing on the spot doesn’t do that.  But will people sign? Of course, they will because that’s the quickest way to get answers to their burning property questions.

How to handle it?

Spread the word loud and clear: signing on the fly is risky business. Urge potential buyers to take their time to really get what value an agent brings before they sign anything.

Buyer Agent Problem #3: Zillow & Similar Lead Providers

Now onto Zillow, which due to the NAR changes, has started requiring callers interested in a property to sign a 7-day non-exclusive touring agreement. Potential buyers might shrug and sign, thinking, “It’s just a week.”

But here’s the twist: if they fall for the property and need to act fast, they’re stuck with that agent to make the quick offer. And let’s face it, not all agents are created equal—especially not the ones paying for those leads.

How to handle it?

Well, there’s not much you can do except to teach the huge importance of buyers taking time to choose the best agent for them based on their due diligence, not on some random agent assigned to open the door.

Buyer Agent Problem #4: Getting Signed Agreements

Alright, let’s cut to the chase on this one—we’ve already chatted about it in blogs and videos about Real Estate Buyer Agent Consultations and “10 Realtor Questions to Expect from Home Buyers”.

Suffice it to say that this new NAR change hurdle is lower than you may think.  All you need to do is break down what you do, the unique value you bring, your commission fees, and how your buyer agent compensation works.

What’s the best way to do that? Whip up an awesome buyer presentation. Spell it all out. Remember, lots of people think buyer agents are just door openers. So, in your presentation, make sure to list out the roughly 100 tasks you tackle for buyers.

Need a cheat sheet? Check out our blog or video titled “Unlocking Real Estate Buyer Agent Value: 117 Services Unveiled!”

Want to make it even easier? Team up with us at Smart Agent Alliance. We’ve got a customizable buyer agent presentation ready for you to personalize and charm a new home buyer. Easy-peasy!

Buyer Agent Problem #5: Holding Back Value BUT Providing it Too!

Here’s a tricky one: If you spend tons of time educating your buyers about every little twist and turn of the real estate market, including savvy tips and strategies, what happens when their buyer representation contract needs to be resigned because it expired?

Well, suddenly your client might wonder if they still need you. After all, you have already taught them so much!

In California, the maximum term for a buyer representation agreement is three months. Kudos to you agents for getting clients into contracts in three months, but let’s be real—it often doesn’t happen that fast.

We’re not fans of this new time cap, even though we let buyers cancel contracts anytime. Why? It’s tough when I’m pouring value into a client’s lap for them to face me and cancel our agreement. But if a contract just runs out of time, it’s easier for people to just do nothing and decide to go it alone. In that case, they don’t even need to talk to me.

This leaves us in a bit of a bind: spill too much wisdom and you might just convince clients they can handle it solo; hold back, and they might think you’re not worth keeping around.

Of course, we agents know unrepresented buyers are significantly disadvantaged by not working with a buyer agent and, worse, by getting played by savvy listing agents. However, buyers don’t seem to understand the disadvantages of having no representation.

How to handle it? 

Navigating this tightrope of upfront value, well that’s tricky. Honestly, I don’t think there’s any magic fix. Buckle up, it’s gonna be a wild ride.

Buyer Agent Problem #6: Signed Unrepresented Buyer Agreement

Imagine this: a buyer comes to you all excited, saying they’ve signed an unrepresented buyer agreement but now they’ve seen the light and want your help to buy the house. Awesome, right? Not so fast.

If they’ve already signed off with a listing agent, there’s a good chance that the agent will pocket their “extra” unrepresented buyer fee, even if they don’t finish the work. That means your buyer could be on the hook for more fees than they expect.

How to handle it? 

Educate, educate, educate so that buyers don’t get in this pickle to start with. But, if it does happen to you, let your buyer know the problem, and then contact the listing agent to determine the level of the problem.

Consider requesting that the listing agent amend their listing agreement. Or, you might consider lowering your own compensation if it means securing the best outcome for your client. In that case, hopefully, the listing agent already put in some hours that you would have done had the buyer contacted you originally.

Buyer Agent Problem #7: More Record Keeping

Oh, the joys of NAR changes and paperwork! But seriously, keeping meticulous records is now more crucial than ever for buyer agents. When you’re juggling non-exclusive representation agreements, you’ve got to keep tabs on who saw what property and when.

This isn’t just busywork—it’s about clarity and keeping things above board in your representation dealings.

And here’s another wrinkle: if your clients end up being charged different fees—maybe because a seller’s only covering part of your fee—you better document every detail. Why? This rigorous paperwork is your best defense against any accusations of violating fair housing laws.

The best new plan: Keep detailed records and stay consistent with your fees, no matter the client or situation. It’s your safeguard in this tricky business.

Buyer Agent Problem #8: Getting Paid

First off, nail down a buyer representation contract that spells out your fee. And don’t sweat it if a buyer’s worried about affording your fee on their own.

Most sellers will still see the value in footing the bill for buyer agents because it brings more buyers and potentially higher offers. Even stubborn sellers will change their tune when they see a net offer that outshines the rest.

Second, make sure your offers include clear language about the seller covering the buyer agent fee. Something like, “Seller agrees to pay the buyer $x amount to meet buyer’s obligation to pay buyer agent”. 

Make sure you get this right for your state’s procedures.  Get it wrong and you may not get paid!

Buyer Agent Problem #9: Need to Warn Do-It-Yourselfers

Here’s a hot take on these NAR changes: lots of buyers think they don’t need a buyer agent anymore—either because they believe agents just open doors, or they think they can’t afford one.

It’s on you to set the record straight. Explain the 100 tasks you handle as a buyer agent and how, more often than not, sellers will cover your fee.

And don’t forget to clue buyers in on the pitfalls of going it solo. Remember those sneaky unrepresented buyer fees we talked about? That’s just the tip of the iceberg.

Let’s say there are two identical offers on a house—one with a buyer agent, and one without. Guess which one has the edge? Yep, the one with the agent. Why? Listing agents know that deals with buyer agents are more likely to cross the finish line smoothly because they are experts in keeping deals on track after an offer is accepted.

You know, tons of calls to inspectors, lenders, escrow officers, the listing agent, everything it takes to make sure all the parts are coming together.  It’s your job now to explain that.

And while you’re at it, highlight how the continuous relationships agents have with one another often result in better outcomes and less risky deals for buyers.

That’s a Wrap

The new NAR changes are definitely reshaping our industry, and how agents and their brokerages behave. But, the new buyer agency agreements complete with clear agent commissions also give us a chance to up our game.

By getting a handle on these NAR changes and clearly communicating their impact to your clients, you position yourself as a knowledgeable and indispensable ally in their home-buying adventure.