Arizona Realtor – Jonas Mancuso

Call Or Text: 602-880-0266

15543 N. Reems Road Suite 139, Surprise, Arizona 85374

Hello, i'm Jonas. Let's Talk Buying!

Welcome to my buyer page. I am here to provide a professional and educated experience to help you navigate buying a new home.

Congratulations on getting ready to buy your new home!

It is my goal to assist you in this process to make it a smooth and stress free as possible.

NAR Settlement FAQ's

Sifting thru the misinformation from the headlines.

Please keep in mind this is a fluid development in the real estate industry and we are learning more information daily. 

The first thing to understand is that there never was a “standard” 6% commission. Commissions have always been negotiable. There are brokers who charge a flat fee, 1%, all the way up to 10% depending on the services they offer to their clients. This commission will not be going away.

The way we currently do it is that the listing agent charges a commission for example 6%. This commission is paid to the agent who is listing the property for sale. That agent then agrees to split that commission with the agent that brings them a buyer and represents that buyer in the transaction. They would notate this in the MLS. The portion that has changed – Moving forward, they can no longer share this information in the MLS. They can still share the commission but it can’t be offered in the MLS. Basically a buyers agent needs to communicate with the listing agent outside of the MLS. Potentially by a phone call ahead of showing the property to their buyer.

A buyers representation agreement is a contract between the buyer and their agent. It has existed for quite a long time but only approximately 40% of agents actually require it from their buyers. Mostly because it can be intimidating to ask a new client to sign an agreement before you even start looking at homes. But get ready, it’s now required. Before an agent can start the process they need to have a signed buyers representation agreement with their client. It must also include how much the agent will be paid.

It is important to understand that home prices are based on supply and demand. Not Realtor commissions. If a home seller makes the choice to not pay the buyers agent and pays their broker 3% instead of 6%, they are not going to discount their house. Seller will ALWAYS opt for selling their property for as much as they can. For sale by owner’s (FSBO) have never paid a commission….and have never reduced their home price by 6%.

Going directly to the listing agent would initiate what is called dual agency. This practice is illegal in 8+ states in the USA. The listing agent is under contract to represent the seller. It is not logical to think a listing agent representing the seller would have their best interest in mind as a buyer. Most real estate lawsuits are the result of dual agency.

In real estate transactions, it’s customary for the seller to cover the commission for both their listing agent and the buyer’s agent. This arrangement ensures that buyers have dedicated representation throughout the process. However, if a seller opts not to compensate the buyer’s agent, it can create a dilemma.

Without compensation for the buyer’s agent, many buyers, constrained by tight budgets, may forego representation altogether and deal directly with the listing agent, who is contractually obligated to represent the seller’s interests. Expecting the listing agent to serve both parties impartially and without compensation is unrealistic and often prohibited by law in numerous states due to the inherent conflicts of interest it presents.

To address this issue, recent legal actions have compelled changes in how commission offers are communicated within the Multiple Listing Service (MLS) system. While sellers can still provide compensation to the buyer’s agent, this aspect must now be negotiated separately outside the MLS platform.

This shift means that when a buyer’s agent inquires about compensation, it will likely occur through direct communication with the listing agent. If the seller declines to offer compensation, the buyer’s agent will inform their client accordingly, as per their pre-established agreement. This ensures transparency and allows buyers to make informed decisions about whether to pursue properties where compensation is provided or seek alternatives.

Moving forward, it’s essential for buyers to have a signed agreement with their agent before beginning their property search. This ensures clarity regarding compensation and empowers buyers to make choices aligned with their preferences and financial considerations.

John and Mary are a newlywed couple. They have scraped and saved enough for a downpayment to buy their first home. They are looking for a Realtor to help them navigate this process. A new real estate guideline has been enacted recently and now they need to sign a buyers representation agreement with their agent before even starting the process. One of the requirements of this agreement is that it must be stated how much their agent is charging them for his/her service, and that they are responsible for paying that fee. Although hesitant to come out of pocket given all they already need to pay for, they agree to sign an agreement with Jonas Mancuso. Jonas informs them that his buyers representation fee is 3% of the home sales price when they make their purchase. He also lets them know that he will seek to have the sellers cover the agreed upon amount via their listing agents commission – as this has been customarily done in the past. He also informs John and Mary that if the listing agent via the seller declines to cover his fee that they will be required to pay it themselves – which will reduce the amount of money they have for their down payment, closing costs, and renovations on their new home. They ultimately agree and sign the agreement. They now start their journey to find their dream home. After an exhaustive search they found a home they would like to see. Jonas says, great – let me call the agent and see if they are offering to cover my fee per our agreement so you won’t be responsible for it out of pocket. Jonas calls the listing agent and asks, are you offering any buyers representation compensation? The listing agent says unfortunately, the seller does not want to. Jonas then tells his buyers that the sellers are not offering buyers representation compensation, so if you like this house and wish to make an offer, you will need to pay me directly upon closing. Do you still want to go see it or would you like to look for something else? John and Mary elect to pass on this property and look for something else. 

What's the difference between a pre-qualification and a pre-approval?

Pre-qualification – Assuming you are not paying cash for your new home and need to finance your purchase, a pre-qualification is the first step in starting the process with your lender. It’s a quick process that usually involves disclosing your current financial situation including your income, resources, and your debts to your lender. This gives your lender the ability to let you know where you stand and what price range of a home you may be able to qualify to purchase. It is NOT a commitment from the lender to give you a loan.

Pre-approval – This is a more indepth dive into your financial and life situation. The lender will gather all the information needed to provide you with a conditional loan approval. This may or may not include your paycheck stubs or source of income, bank statements, credit reports, etc. Once all of this information is gathered, and you meet the lender’s underwriting guidelines, your loan officer will generally issue a pre-approval for a loan.

If you are ready to take the first step and obtain your pre-qualification, call or text Shane Gowitt @623-300-5562 with Fairway Independent Mortgage, and he will be happy to assist you in this process. Don’t forget to let him know Jonas sent you to get started! Click below to learn more about Shane!