Effective August 17, sellers won’t have to agree to pay both sides’ commissions up front when they list their homes for sale.
Mar 16, 2024 · Realtors could now compete on commissions, allowing for prospective buyers to shop around on rates before they commit to buying a home.
When selling a home as “For Sale By Owner” (FSBO), a sellers often offer a sales commission to a buyer’s agent.
This fee always came out of the seller’s net proceeds.
The seller usually factored it into the price they were willing to accept. The commissions can vary, but it’s typically split between the buyer’s and seller’s agents. Homebuyers usually didn’t pay any commission in their transaction.
To let buyers and agents know if they are willing to pay a commission, sellers can include wording such as, “Buyer’s Agents Welcome” or “Will Work With Buyer’s Agents” on their sign, along with their contact information.
Using a buyer’s agent can sometimes be beneficial when purchasing a FSBO home.
A good buyer’s agent who has experience negotiating purchase offers can help you find bargains and negotiate the lowest possible price.
In fact, agents can no longer communicate “offers of compensation” to other agents through their local Multiple Listing Services.
If you recently sold your home, you might even get part of your realtor fee back
The National Association of Realtors has announced that it reached a nationwide settlement of claims that the industry had conspired to keep agent commissions high.
Big changes are coming to the way people buy and sell houses in the United States. The National Association of Realtors settled a lawsuit last week that could up-end the way real estate agents are paid, doing away with the traditional agent’s commission of 5-6%.
What does this mean for buyers?
Buyers can negotiate both the commission they will pay and how they will pay it. For example, sellers and their listing agents can still offer to split the commission with the buyer’s agent or cover their fees through seller concessions. Alternatively, buyers could be responsible for paying their agent out of pocket, so they should discuss up-front how their agent will be paid. This should be outlined in the written agreement that will be required between buyers and their agents.
What does this mean for sellers?
Sellers can still negotiate the commission they pay, and they may be able to secure a lower cost. While they can agree to pay commission for the buyer’s agent, it’s not required.
The bottom line is that buyers and sellers will still compensate agents for the many services they provide, and these fees will be negotiable, like always.
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