BuyersReal EstateSellers March 17, 2024

Buyer’s Agent Update-March 2024

There is a lot of news this month related to compensating your real estate agent. The bottom line is that the amount of commission to the agent of a buyer or seller is negotiable. Until recently, it had been assumed by some that a seller would pay approximately 6% of the sales price toward commissions. The agents then split that 60/40 or 50/50 for example.

Until now a buyer’s agent could potentially ‘cherry pick’ homes in which sellers offered a certain percentage of compensation. Cherry picking is not ethical representation of the buyer, however nor is it good business. Due to the National Association of Realtors lawsuit settlement, a buyer’s agent can no longer see the level of compensation when previewing homes to visit so essentially removing the risk of cherry picking.

As a buyer, note that your realtor will speak about their commission up front because you may be paying all or some of it. It is a negotiable amount and may be based on services you expect.

Essentially, as the buyer, you should have a strong level of trust and confidence in your real estate agent. Expect a clear and continuous dialogue. If you have time, feel a few different real estate agents out. Have conversations with agents and at different agencies and evaluate each: Do you trust the person? Is the agent knowledgeable? What resources does the agent have and is his/her/their willingness to help clear? What if any compensation will be owed?

Home buying with the right team makes a huge difference not just in the moments of the buying process but sometimes for years after. Get the right house with the right team!

Do you want to know more about the settlement? Find it here.