I’m sure you have heard about the recent real estate settlement concerning how commissions are paid in Real Estate transactions, but what does this mean to you if you are a buyer or seller?
Although the changes will not likely take effect for another 3-4 months, things are starting to shift now and knowing how this will affect your buying or selling will help you be prepared.
One of the major differences is that sellers will not be allowed to promote the amount of commission they will offer a buyer's agent on the MLS. Sellers can still plan on offering a buyer's commission in hopes of making their property more attractive to potential buyers.
The Buyer’s agent commission will be negotiated between the two agents in the transaction and can be determined by a combination of the seller’s offering and the buyer's agreement with their agent.
So for instance, if a seller lists a home on 123 Main Street and agrees to pay their listing agent a 4% commission to sell the home and a buyer who is working with a buyer's agent wants to write an offer with a 2.5% buyer's agent commission to be paid by the seller, the total commission to the seller would be 6.5%.
In a different scenario, the seller is not paying any buyer’s agent commission, the seller would still pay the selling agent 4% and the buyer would have to pay their buyer's agent commission of 2.5% as previously agreed.
Another big change is that a buying agent needs to have a signed agreement with a buyer prior to showing a home. That agreement must state the amount of compensation the buyer's agent will get from the buyer or seller The days of having different agents showing buyers around to see a bunch of homes are likely to discontinue, and successful buyer’s agents are going to need to show prospective buyers why they should choose them to represent them in the buying process.
Therefore, expect to see buyers' agents offering more value propositions to potential buyers.
At the Amy Team, we have our Elite Buyers Club. We offer the use of our contractors, moving trucks, and we will target neighborhoods with letters, postcards or even door knocking, to find possible properties, This and more is available to you FREE when you join our Club.
For more information about the new changes, please reach out to me at 330-356-4409 or check out our website 4amyteam.com.
We would love to help you BUY, SELL or INVEST in Real Estate.