08/16/2024
Have you heard there are BIG changes in the Real Estate Industry? Well I thought I’d answer a few quick questions about the new compensation guidelines;
What is the reason for changes in how the real estate market operates?
Traditionally if a person wanted to hire a Realtor to list their home, they negotiated a commission rate and gave permission for that agent to share that commission equally with a buyer’s agent. In a sense the list agent was negotiating the buyer's commission for the buyer. As of August 17th MLS will no longer list a buyer agent commission rate as that will be up to the buyers to negotiate on their own.
What is the change for a seller?
Now, when you hire a Realtor to list your home, you’ll negotiate the rate you want to pay your agent only for their service to list your home for sale. That’s it! Then, just like always, when offers come in your agent will compare the terms, financing and concessions and together you’ll negotiate the best offer for you. If a buyer is asking for help with all, or some, of their buyer agent costs it will be outlined as part of the offer concessions.
What is the change for a buyer?
Buyers will now be required to sign a buyer’s agency contract before you start looking at homes. This is new and can be a big change. This will give you the opportunity to negotiate the rate you want to pay your agent for their education, guidance and service. Nervous about a contract? No worries, a contract can be written up to see just one house, for a month or for whatever period you are comfortable with. Concerned about financing the buyer agent fee? Most sellers will be open to paying for this fee as part of the transaction as they will be looking at the best offer and what their walk away is. Luckily your experienced agent will help navigate this process for you!
Questions? Heck just call/email or text me at 616-962-7065. As always I would really appreciate sharing my info to friends and colleagues who are looking for real estate help.
- Kristen
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