THE SALE OF YOUR HOME IS A BIG DECISION
You deserve to make an informed decision, and we’re here to help. This guide will help
you understand the changes in the real estate industry and what this news means for your
home’s sale.
In March 2024, the National Association of RealtorsTM (NAR) announced a settlement to a national case that amends residential real estate practices going forward, including agent compensation.
What every seller should know:
- The amount of commissions paid to real estate agents has always been and will remain negotiable.
- Sellers have always had the choice to offer concessions to assist with the buyer’s closing costs. This remains in effect.
- MLSs can no longer advertise compensation to the buyer’s agent. Sellers should discuss buyer agent compensation early in the relationship with their agent.
- Before viewing a home, a buyer’s agent must have a signed agreement with their buyer client, which details how the agent will be compensated.
When it comes to a successful transaction, we always have your best interests in mind. Let’s discuss the best strategy for your home’s sale.
BUYER AGENT COMPENSATION AND YOUR HOME MARKETING PLAN
Traditionally, a listing agent shared their commission with the agent representing the buyer. This was known as “cooperating compensation.” Moving forward, the seller can negotiate a concession directly with the buyer through the purchase agreement process. If the seller agrees to the concession, a buyer may elect to use the concession to compensate their buyer agent.
This is an essential decision that will be discussed as part of your home marketing plan. We’ll also review a market analysis, timing, home readiness, staging, photography, promotion, advertising, open houses, and more.
Each step will be carefully considered with input to help you achieve your goals.
COMMON QUESTIONS REGARDING BUYER AGENT COMPENSATION
WHY WOULD A SELLER OFFER A CONCESSION TO THE BUYER TO COVER THE BUYER’S AGENT COMPENSATION?
When marketing your home, the goal is to obtain the highest number of offers. Offering a concession to the buyer to help cover costs such as buyer agent compensation helps make your home appealing to the broadest group of potential buyers. Some buyers, despite being well qualified, may not have the additional resources needed without those seller concessions.
Offering a buyer a concession is a marketing strategy that tends to attract a wider pool of buyers, leading to more offers, possibly a higher sales price, and often better return on a seller’s investment.
ARE SELLERS ALLOWED TO OFFER COMPENSATION TO THE BUYER AGENT?
Yes. Sellers can offer a concession to the buyer that may be used, in part, to cover the buyer’s obligation to their agent.
CAN A SELLER ADVERTISE A BUYER CONCESSION?
Yes. A seller may advertise and promote their willingness to cover certain buyer obligations.
CAN SELLERS OFFER BUYER CONCESSIONS LATER IN THE TRANSACTION?
Yes. Buyers and sellers at any time may negotiate the terms of the contract, which may include concessions to cover a buyer’s various obligations.
CAN THE LISTING AGENT ALSO REPRESENT THE BUYER?
Yes. This is called “dual agency,” and after disclosing this to both the buyer and the seller, it is allowed. Sellers, along with the listing agent, should discuss the pros and cons of such a transaction before entering into any agreement. If a potential buyer requests “dual agency,” you will be consulted on how to proceed.
WHAT IF MY HOME IS CURRENTLY LISTED AND WAS LISTED BEFORE THE NAR CHANGES?
We will continue to market your home and attract the largest buyer pool to achieve your goals. The listing agreement you have remains in place, as well as our commitment to providing outstanding service. However, there is a required amendment that will
bring your listing agreement into compliance.