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The new real estate commission laws are shaking things up. Here’s the quick and dirty version: buyers and sellers now have more clarity and control over commission negotiations. This means a more transparent process, but also some new things to keep in mind. Read on to get the full scoop.
Traditionally, real estate commissions were split between the buyer’s agent and the seller’s agent, with the seller typically covering the cost for both sides. It was simpler, but not necessarily transparent. Sellers often paid a standard percentage, while buyers were somewhat in the dark about the actual costs involved.
The new laws are altering how these commissions are negotiated and paid. Buyers now might be more involved in negotiating the commissions directly with their agents. This means a potential shift in how costs are distributed and greater transparency for all parties.
These changes aim to increase transparency and fairness in the real estate transaction process. Understanding these changes can help you make informed decisions when buying or selling a home. No more hidden fees or surprise costs at closing!
For Buyers: Discuss commission agreements with your agent upfront. Don’t be shy, it’s your money! Understand exactly what you’re paying for and why.
For Sellers: Understand how to negotiate agent fees effectively. Knowledge is power! Be aware of market rates and be ready to discuss terms.
For Both: Stay informed and ask questions to ensure you’re getting the best deal. Seriously, ask away! Transparency is key to a smooth transaction.
You’ve Got Questions,
We’ve Got Answers
In some cases, if the seller will not offer a commission to a buyer’s agent, you may be on the hook to pay your agent’s commission. As a buyer’s agent, we would always push to have the seller pay the full commission because most sellers are typically in a better financial situation than a first-time buyer.
The day of closing when the property gets funded.
Yes, you can, but there are many pitfalls that could cost you tens of thousands of dollars if you make mistakes. Good buyer’s agents are savvy professionals that are looking to save you the most money and get you the best deal on a property. They are worth their weight in GOLD!
A buyer’s agent provides a range of services including:
Yes, moving forward most agents will not work with you unless you sign an agreement upfront. This will ensure they get paid either from the seller or you.
You’ve never HAD to. You’ve also never had to pay a listing agent commission either. Commissions have always been negotiable. However, in most cases, the best way to get the most money for your home is to hire a great listing agent and offer a buyer agent commission. This will increase your chances to get the most exposure on your home.
Potentially on the commission, yes, but if 30% fewer people see your home, you are decreasing your chances to get the most exposure. If you take 10% less on the sale of the home as a result, then most likely you are losing money instead of saving money.
A listing agent provides several valuable services, including:
The new rules mean you’ll need to be more transparent about your commission structures and services. Clients will expect clear explanations and justifications for your fees. Here’s what you need to focus on:
Use simple, clear language and be transparent. Explain that the new laws are designed to increase transparency and fairness. Provide examples and scenarios to illustrate how commissions work and how clients can benefit from your services.
Stay informed about the new laws and their implications. Update your client communication materials to reflect the changes. Focus on building trust with your clients through transparency and excellent service.
Fight to Sell and the video ‘Fight for Your Right to Sell’ are created to bring clarity amidst the confusing noise regarding the NAR lawsuit.
Our goal is to educate both consumers and agents in easy-to-understand language. We believe that everyone should have access to clear, straightforward information about real estate transactions. Whether you’re a first-time buyer, a seasoned seller, or a dedicated agent, we built this site and video to help clarify the complexities of the new law.
