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What is a Buyer-Agency Agreement and Why Does it Matter?
In today’s evolving real estate landscape, one of the biggest changes buyers will encounter is the relatively new requirement to sign a Buyer Agency Agreement. While this added step may sound formal, it’s actually designed to make the home-buying process more transparent, secure, and ultimately more beneficial for everyone involved.
What is a Buyer-Agency Agreement?
At its core, a Buyer Agency Agreement is a written contract between you and your real estate agent. It outlines your working relationship, defining the agent’s responsibilities, the services they’ll provide, the duration of your partnership, and how their compensation will be handled. Think of it as the roadmap for your home-buying journey, ensuring everyone starts on the same page, with mutual understanding and trust.
Starting in mid-2024, the National Association of REALTORS® (NAR) began requiring agents to have a signed buyer agency agreement before showing homes to clients. This change stems from a nationwide settlement designed to bring greater transparency and accountability to real estate transactions by ensuring all agent-buyer relationships are clearly defined in writing. In some markets, this requirement isn’t new; states like Washington, Idaho, and Utah have long recognized the importance of formalizing this relationship. But for many buyers, this will be their first time signing such an agreement, and understanding its purpose can make all the difference.
So, why does it matter?
Transparency and Trust
This agreement ensures clarity around both compensation and representation. It spells out how your agent is paid—whether by the seller, by the buyer, or by both—so there are no surprises later. With these details defined upfront, you can move forward with confidence, knowing your agent’s focus is squarely on your best interests.
Defined Roles and Responsibilities
A Buyer Agency Agreement clearly outlines what your agent will do for you: from helping you navigate listings and compare neighborhoods to guiding you through offers, inspections, and closing. It also defines your responsibilities as a buyer, such as communicating openly and working exclusively with your chosen agent throughout the duration of the agreement. Together, these expectations create a smoother, more collaborative experience.
Protection and Professionalism
Buying a home is one of life’s biggest investments, and having a written agreement in place protects both you and your agent by setting clear parameters for your working relationship. It ensures your agent is committed to advocating for your needs, maintaining confidentiality, and acting in your best interest throughout the process.
While some may see the Buyer Agency Agreement as an extra step, it’s really a safeguard, one that reinforces the professionalism and dedication that define Windermere Real Estate agents. It turns a handshake of trust into a documented commitment, empowering buyers to make confident, informed decisions at every stage of the journey.
Connect with a Windermere agent today to learn more about how we can help you navigate your home search with confidence.
What You Should Know About the Multiple Listing Service (MLS)?
In the process of buying or selling a home, you’ll frequently come across the term “MLS.” The Multiple Listing Service (MLS) is a group of regional databases of homes for sale accessible only to real estate agents and brokers. Their ability to access the MLS makes it easier for buyers to find the right home and for sellers to market their listings.
What is the Multiple Listing Service (MLS)?
The purpose of an MLS is to facilitate real estate transactions by connecting real estate agents and making it easy for them to share information about active listings and sold home data. For buyers and sellers, your agent’s access to the MLS means you’ll be connected to the largest network of homes and listing information on the market.
There are over 500 independent MLSs across the United States, with each MLS showing the homes for sale in a particular geographic region. Listing agents add their clients’ listings to the database—providing photos and detailed information about the property—so buyer’s agents can show them to their clients. The MLS allows for customizable searches, which agents use to easily identify the homes that match their clients’ criteria. The vast amount of historical data available on the MLS is what your agent will use to conduct their Comparative Market Analysis (CMA) to competitively price your home. The listing data in the MLS is fed to real estate brokerage websites, such as Windermere.com, so that buyers can search for homes on their own as well.
Benefits of the Multiple Listing Service (MLS)
Selling a home is a numbers game. The more potential buyers you can reach, the more likely you are to find the right buyer in a timely manner. After your agent conducts their CMA to determine the value of your home, they’ll upload the listing to the MLS. Here, they can add additional information beyond what you would find in a typical listing description, such as showing times, contact information, and more. The MLS provides maximum visibility for sellers by connecting them to buyer’s agents who are actively searching for listings. In today’s market, many MLS platforms offer mobile-friendly tools and agent apps, making it even easier to track showing requests, market updates, and search results on the go. Some even use AI to help agents identify pricing trends or recommend homes that match specific client needs.
The MLS has also helped to make the industry more equitable. Many MLSs enforce policies that promote fair and equitable access to listing data. This includes rules that require agents to submit a listing to the MLS within 24 hours of public marketing, along with principles from the Fair Display Guidelines, which aim to ensure that property listings are represented transparently and are easily accessible. Small real estate brokerages have access to the same MLS info as large companies, putting everyone on a level playing field.
For buyers, the MLS means greater transparency. Agents can set up auto-alerts based on your criteria and ensure you’re seeing listings as soon as they go live. Because the MLS is updated in real-time by licensed agents, it’s often more reliable than national search portals when it comes to availability and details.
What is an MLS number?
An MLS number is a unique code for each home listed on the market. It makes it easier for agents to communicate regarding a specific property. This number also helps agents quickly pull up detailed reports, schedule showings, and share links directly with their clients. If you ever have a question about a home you’ve seen, providing the MLS number ensures your agent can locate it fast.
To learn more about the MLS, or for answers to your buying and selling questions, connect with a local, experienced Windermere agent today:
Planning Ahead: A 12-Month Guide to Buying Your First Home
Thinking about buying a home can be daunting, especially if it’s your first time. What should be an exciting milestone can feel overwhelming without a clearly defined roadmap, and diving in headfirst without a solid plan can lead to unnecessary stress, financial surprises, and missed opportunities. However, by establishing a timeline and breaking the process down into manageable steps, you can move forward with confidence and clarity.
Here is your month-by-month guide to preparing for a successful home purchase in the following year.
12 – 10 Months Out
Know Your Why
Understand your motivation for buying. Are you relocating, growing your household, or ready to invest in your future? Clearly defining your “why” will help shape your search criteria and influence your budget, location, and timeline.
Set Clear Goals
Start to think about what you want in your new home. Create a list of your wants versus must-haves, including location, budget, size, and style of home. These goals will act as a compass throughout your search. Be sure to include your ideal timeline and what you hope to get out of the overall experience.
Find an Agent That Prioritizes Your Goals and Timeline
A trusted real estate agent is more than just a facilitator; they’re a guide, negotiator, and advocate. Look for someone who understands your timeline and long-term vision and is familiar with the local market. Ask them to provide a first-time buyer’s guide or checklist to help you get started. Building this relationship early allows your agent to understand your needs and preferences in advance, setting the stage for a smoother process when you’re ready to make your move.
9 – 7 Months Out
Assess Your Finances
Take a close look at your income, debt, and spending habits. Use this time to create a monthly budget that includes future mortgage payments, utilities, insurance, taxes, and home maintenance. Many experts recommend spending no more than 28% of your gross monthly income on housing costs.
Boost Your Credit
Your credit score has a significant impact on your buying power, including your mortgage rate and loan approval. Take the next few months to pay down high-interest debt, stay current on all payments, and avoid opening new credit accounts. Check your credit report for errors and work on improving your score if needed.
Start Saving
You’ll want to have enough set aside not only for a down payment, which is typically 3% to 20% of the purchase price, but also for closing costs, moving expenses, and initial home repairs or furnishings. During this time, try to avoid nonessential major purchases and think about setting up a dedicated home savings account to stay consistent.
6 – 4 Months Out
Talk to a Financial Advisor
A financial advisor can help you align your financial goals with your homebuying plans. They can offer advice on what you can realistically afford and help identify areas to strengthen your financial readiness. You can also use tools like an online mortgage calculator to get a clearer idea of what your future monthly payments might look like.
Research Homebuyer’s Courses & Guides
Take advantage of first-time homebuyer resources, guides, and online courses. The more you know earlier on, the more confident you’ll feel.
3 – 2 Months Out
Familiarize Yourself with the Market
Start browsing homes and monitoring prices in the neighborhoods you’re interested in. Learn whether your local market is currently favoring buyers or sellers and what that could mean for your strategy.
Meet with a Lender and Get Pre-Approved
Meeting with a lender and getting pre-approved can help give you a clear picture of how much you can borrow and what price range to shop within. It also shows sellers that you’re a serious buyer when the time comes to make an offer. Your realtor can recommend trusted lenders to work with and assist you through this process.
Start Your Home Search
Now that you have your list of wants and needs and know your price range, you’re ready to start searching for your dream home. Use online property research tools to filter by location, features, and price to see what’s available in the locations you like. Narrow down your top homes and start scheduling showings and comparing listings.
1 Month Out
Make an Offer
Once you find “the one,” your agent will help you craft a competitive offer, negotiate terms, and guide you through contingencies.
Get a Home Inspection
If your offer is accepted, a licensed inspector will identify any issues with the property before you finalize your purchase. Depending on what comes up, this can give you leverage to negotiate repairs or price adjustments.
The Time Has Come
Closing On Your New Home
You’ve made it! During closing, you’ll sign paperwork, pay final costs, and receive the keys to your new home. Your agent and lender will walk you through the final steps to ensure everything goes smoothly.
Buying a home may seem like a big leap, but with a solid 12-month plan and the right support, it can be an extremely rewarding experience. Take it one step at a time and know that a trusted agent is here to help whenever you’re ready.
Real Estate Contingencies: What They Are and Why They Matter
Imagine a home-buying scenario where you make an offer, the seller immediately accepts, and everything goes smoothly until you’re handed the keys. It’s possible, but more often, buying a home involves negotiation, counteroffers, and a back-and-forth dialogue between buyer and seller to reach a deal. And in some cases, the deal can fall through.
That’s where contingencies come in.
Contingencies are built-in protections within a real estate contract. They help both buyers and sellers navigate the natural ups and downs of the home-buying process by setting clear conditions that must be met for the sale to go through. For buyers, they also provide important safeguards, along with strategic tools to shape and strengthen their offer. Whether you’re a first-time home buyer or you’ve bought before, you should be aware of common real estate contingencies and the role they play in making an offer on a home.
Making a Contingent Offer on a Home
Once you and the seller agree on the price of a home, both parties have certain responsibilities before closing. Buyers are responsible for securing financing, scheduling a home inspection, and getting the property appraised. Sellers are responsible for prioritizing the offer on the table and opening their doors to the home inspector when the time comes. The agreed-upon contingencies included in the contract define what happens if something doesn’t go as planned.
Contingencies present a spectrum of options to home buyers, allowing them to walk away from a real estate transaction with their earnest money intact or renegotiate the contract. And while including contingencies offers protection and negotiation leverage, removing them can be an effective strategic move too, especially in a competitive market.
In a seller’s market, competition amongst buyers is high, and they often face multiple-offer situations. It’s not uncommon to see escalation clauses, bidding wars, and all-cash offers as buyers try to stand out and strengthen their position. To sweeten their offers in such market conditions, buyers will typically waive their contingencies. However, while waiving contingencies can make for a more attractive offer, it also presents increased risk due to lack of protection. That’s why it’s necessary to understand each contingency and carefully consider what makes the most sense for your situation.
Common Real Estate Contingencies
Home Inspection Contingency
After you’ve made an offer, a professional home inspector will thoroughly examine the property before the deal is finalized. If issues are uncovered, this contingency allows you and your agent to request repairs, present the seller with a new offer that accounts for the home’s lessened condition, or cancel the contract entirely.
Financing Contingency
Also known as a “mortgage contingency,” a financing contingency gives the buyer a specified period of time to secure adequate financing to purchase the home. Even if you are pre-approved for your mortgage, you may not be able to obtain the right loan for the home. If you are unable to finance the purchase, this contingency allows you to back out of the contract and recover your earnest money, and the seller can re-list the home.
Appraisal Contingency
An appraisal contingency states that the home must appraise for, at minimum, the sales price. In other words, it is to make sure the home is worth the agreed-upon price. It allows you to walk away from the deal if the property’s appraised value is lower than the sales price and typically guarantees that your earnest money will be returned.
Home Sale Contingency
If you’re buying a new home while selling your current one, you may want to include a home sale contingency in your offer. This contingency specifies the date by which you’ll need to sell your current home in order to move forward with your offer. If you don’t sell your home by the specified date, the contract is terminated. Home sale contingencies are financially appealing in that they allow buyers to use the proceeds from their home sale to fund their new home purchase. However, these contingencies force sellers to wait until the buyer’s current home sells, which means they likely won’t accept such offers in competitive markets.
Title Contingency
Before the sale of a home goes final, a search will be performed to ensure that any liens or judgments made against the property have been resolved. A title contingency allows you to raise any issues you may have with the title status of the property and stipulates that the seller must clear these issues up before the transfer of title can be completed. If an unpaid lien or unpaid taxes turn up in the home’s title search, this contingency also allows you to back out of the deal and look for another home.
To learn more about preparing a winning offer, connect with a local, experienced Windermere Real Estate agent.
When is the Best Time to Buy a House?
There’s a factor of the home buying process that can often be the catalyst for everything that follows. That factor is timing. Much of the dialogue—rightfully so—around buying a home is focused on the “what.” However, it’s often the case that the “when” is just as important.
So, when is the best time to buy a house? The answer is simple: the best time to buy is the right time for you. Fortunately, knowing when the time is right isn’t some sixth sense; it’s much more concrete. It’s a matter of understanding local market conditions, your financial situation, the status of mortgage rates, and how those factors fit in with your lifestyle changes and your motive for moving.
When is the Best Time to Buy a House?
With so much subjectivity in the decision-making process, it can be helpful to look at cold, hard facts to determine whether it’s the right time to buy. Although every real estate transaction is different, your local market conditions will give you a good sense of how to approach the housing market. There are two basic categories: a buyer’s market and a seller’s market. In short, the characteristics of a buyer’s market—high inventory, fewer buyers, lower competition—favors buyers, and the characteristics of a seller’s market—low inventory, many buyers, high competition—favors sellers. You may be in a position where you’re able to wait for favorable buying conditions, or you may be thrust into a highly competitive market due to external factors pushing the agenda of your move, such as a career change or starting a family. Regardless of the market conditions you face as a buyer, work with a buyer’s agent is critical to efficiently navigate your local housing market and prepare a winning offer when the time comes.
Which homes can you afford?
Your financial situation also looms large when deciding whether it’s the right time to buy a house. Before you start looking for homes, assess your buying power. Having greater buying power will show the seller that you’re fully capable of purchasing the home and may vault your offer over others.
To get an idea of what you can afford, use our free Home Monthly Payment Calculator by clicking the button below. With current rates based on national averages and customizable mortgage terms, you can experiment with different values to get an estimate of your monthly payment for any listing price. Using the Home Monthly Payment Calculator, you can make a well-informed estimation of whether it’s the right time to buy.
The Home Buying Process
Moving often goes hand in hand with lifestyle changes. As you’re preparing to buy a house, you may be juggling an employment change, the birth of a child, or any combination of other life-altering events. Buying a home takes time, and although an agent will streamline the buying process, it will inevitably impact your day-to-day schedule. Here’s a quick glance at the steps in the home-buying process.
- Find the right agent
- Get pre-approved for a mortgage
- Search for homes
- Attend open houses and showings
- Make an offer and negotiate
- Put down earnest money
- Appraisal/Inspection
- Closing process
- Move into your new home
For helpful resources on the home buying process from start to finish, visit our website:
Buyer Basics – Your Guide to Buying a Home
Seasonality
You’ve undoubtedly heard the age-old real estate maxims about buying in different seasons and how to use the calendar to your advantage to score a good deal on your next home. There’s an element of truth to these sayings, but the best way to grasp the effects of seasonality in your area is to work with an experienced local real estate agent. Their expertise and access to data and tools will be your ultimate resource in tailoring your buying strategy to your local housing market. Connect with an experienced Windermere agent to begin your home-buying journey:
The Biggest Home Buying and Selling Mistakes (and How to Avoid Them)
There’s nothing more exciting, rewarding, and fulfilling than buying a home. However, it’s a complex transaction, and there are a number of steps along the path that can confuse, betwixt, and befuddle even the most seasoned buyers and sellers.
How can you avoid those potential pitfalls and common mistakes? Look to your real estate professional for advice and keep these guidelines in mind:
Finding Your New Home in Four Steps
Whether you’re a first-time homebuyer or you currently own and are looking for a new home, the ideas below will help you better navigate that all-important first step: Finding a property that you like (and can afford).
How to Increase Your Buying Power
One of the best ways prospective home buyers can empower themselves when purchasing a home is to improve their buying power. The numbers may seem daunting but identifying ways to strengthen your financial standing will help you each step of the way.
When visualizing your dream home, it’s common for buyers to focus on the physical characteristics. But to mortgage lenders, a home is a numbers game. The following categories related to your buying power demonstrate how lenders identify your financial standing and determine your eligibility for a home purchase. Improvements in these areas will increase your buying power, propelling the strength of your offer when you’re ready to put it on the table.
How to Increase Your Buying Power
Increase Savings For Your Down Payment
As the saying goes, cash is king. The down payment—often 20% of the home’s sale price—can sometimes be the deciding factor between competing offers for a particular home.
Try stashing away a little of each paycheck to build up your savings over time. Set a savings goal, commit a dedicated amount to each pay period, and watch the savings build as time goes on. If you prefer to keep your money separate, open a new account to which you can dedicate the added savings. Another way to save for your down payment is to generate additional income. If you have interest or experience in an area outside of your current job, explore opportunities for part-time work and dedicate the income earned to your down payment savings.
There are numerous benefits to offering a serious down payment. Putting 20% or more down can help your offer stand out, it may allow you to negotiate a lower interest rate on your mortgage and could remove the need for private mortgage insurance (PMI).
Improve Your Credit Score
Plain and simple—a better credit score leads to better interest rate on your mortgage. Your payment history, amounts owed, length of credit history, credit mix, and new credit all factor into your credit score. Although improving it will not happen overnight, a higher credit score will pay dividends in the long run.
To improve your credit score, focus on paying down your credit cards, especially those with high interest. Refrain from opening new lines of credit that aren’t necessary and stay away from large purchases leading up to the time when you are preparing to make an offer. Keep in mind that student loans factor into your financial picture. Paying them off consistently will improve your financial standing in the eyes of lenders.
Stabilize Your Debt to Increase Buying Power
When assessing what you can afford, banks will examine your debt-to-income ratio. Lenders want to know that you’ll be able to pay your mortgage on top of your remaining debt.
They do this by looking at your housing ratio, or front-end ratio, to determine what portion of your income will go to paying your mortgage. Your front-end ratio is calculated by taking your monthly mortgage payment and dividing by your monthly gross income. The higher the ratio, the higher risk of default.
Next, your back-end ratio, or debt-to-income ratio, is used to determine how much of your monthly income goes toward paying your debts. Your back-end ratio is calculated by taking your monthly debt expense (the principal, interest, taxes, and insurance of your mortgage payments, credit card payments, student loans, and any other loan payments), and dividing it by your gross monthly income.
Similar to your credit score, paying off credit cards, and making steady, consistent progress on your loans will help to decrease your debt and improve your debt-to-income ratios, which will increase your buying power.
Although these aspects of your finances don’t cover everything that goes into the purchase of a home, they do play a significant role in how lenders assess your financial standing and thereby eligibility for approval. Increasing your buying power takes time and strategy. Plan accordingly so that when you find your dream home, you’re in the best position possible to buy it.
To connect with an experienced Windermere agent, get started here:
Multigenerational Home Buying Guide
For any family looking forward to multigenerational living, there’s much to consider when trying to find the right property. Whether you’re planning to welcome your parents or grandparents, provide a comfortable space for adult children, or simply want to create a home that accommodates your extended family, finding the right place takes time. Let’s take a look at some of the key factors that play a role in your home search.
Multigenerational Home Buying
Prioritize Location
Just as with any real estate purchase, location is vital to finding the right home for your extended family. For your young ones, you might consider the nearby schools. For the older folks in your home, you’ll want to know your proximity to healthcare facilities and community spaces. And for everyone under your roof, you’ll want to be close to the places that help you all enjoy life, such as parks, bodies of water, and other recreational areas.
Floor Plan
With more people living in a multigenerational home, layout can often take precedence over aesthetics. Of course, you still want your next home to look the part, but fundamentally, you have a lot of foot traffic to account for and future accessibility to think about. Homes with separate living spaces are a great option for accommodating a large family. Features like a furnished basement, a mother-in-law suite, an accessory dwelling unit (ADU), or a detached guesthouse can solve a lot of problems, present and future.
Private Spaces
Along with an ideal layout, it’s important to have private spaces so each person can enjoy their time at home. Make sure there are separate bedrooms, bathrooms, and if possible, separate living areas to allow family members to make the most of their personal space while still enjoying the benefits of living together. You can either look for homes that have defined private spaces or identify the ones that are good candidates for remodeling projects that can create them.
Buying with Remodeling in Mind
Home Inspection
A thorough home inspection is a necessity. With several people living with you—some of whom may be elderly—you need to know that your home can provide for everyone for years to come. The home inspection will help you to identify any potential issues with the property and make informed decisions about how to negotiate with the seller.
When looking for properties, look at the condition of the roof, plumbing, electrical systems, and identify any potential structural concerns. Talk to your agent about the findings of the home inspection and what it means for you as you prepare to make an offer.
Home Inspection: A Reality Check from a Pro
Think About the Future
How will your needs change at home in the future? Thinking about the long term can help you narrow your home search. Maybe you’ll need additional space as your children grow up or as your parents age into their elderly years.
A home with a more flexible design and layout may be a better investment for you in the long term.
For more information on finding the right home, connect with a local, experienced Windermere agent today:
Featured Image Source: Getty Images – Image Credit: PeopleImages
What Does DOM Mean in Real Estate?
As you start searching for homes, you’ll likely come across different terms that describe the status of different listings. One term, “Days on Market” (DOM), can play a role in your strategy for making an offer. Knowing what this term means will help to inform your discussions with your agent as you go about finding the right home for you.
What is Days on Market (DOM)?
Days on Market (DOM) is a metric used by real estate professionals (and home buyers) to measure the time that a certain property has been listed for sale. In other words, it’s the running total number of days since a home hit the market. Different factors contribute to how long a home is on the market, including the home’s features, its location, and the local market conditions. Brush up on seller’s and buyer’s markets to understand how these market conditions affect days on market.
Why does DOM matter?
- Buyer Hesitancy: Just like contingent and pending listings, a home with a longer Days on Market may make buyers think there is something wrong with the property. The right buyer may very well come along, not swayed in their decision by the DOM number, but for some, it raises questions about why the home hasn’t sold yet.
- Market Value: Over time, Days on Market can impact the home’s listing price and how much it ultimately sells for. If a property stays on the market for an extended period, the seller may need to reduce the price to prevent it from going stale. On the other hand, the longer the DOM, the more leverage a buyer potentially has to negotiate a more favorable offer.
- Local Market Conditions: Looking at trends in DOM can give both buyers and sellers a better understanding of local market conditions. If homes are flying off the market left and right with low DOM, it’s a competitive market that favors sellers. Buyers will be more likely to remove contingencies to make their offer stand out amongst the competition. If DOM is high across the board, the market is not as competitive, and buyers have more leverage.
- Negotiations: The leverage created by Days on Market flows through to negotiations. If you have leverage on your side, you can expect that the seller will be more willing to negotiate on price or repairs than they would if the tables were turned. Make sure you and your agent are on the same page regarding how the DOM figures you’re seeing locally will affect your strategy for making an offer on a house.
Talk to your real estate agent for more information about Days on Market (DOM) and how long homes are staying on the market near you. This one statistic could alter your strategy for approaching the market and, when the time comes, how you put together your offer on a home. Connect with an experienced Windermere Real Estate agent today to learn more:
Featured Image Source: Getty Images – Image Credit: SDI Productions
