FAQ: New Real Estate Commission Laws and Their Impact on Buyers
Beginning in July 2024, sellers’ agents will not be obligated to share their commission with buyers’ agents via MLS. Instead, buyers will need to formalize a written agreement with their agents, specifying the commission that the buyer will pay directly.
As a buyer, it’s advisable to allocate funds for your agent’s commission apart from the home’s purchase price. This approach can enhance transparency and may reduce overall expenses, as it allows you to negotiate the commission directly with your agent.
Yes, commissions are negotiable. Buyers now have more leverage to discuss and agree on a fair commission rate with their agents, potentially reducing their out-of-pocket expenses​. Rick Houston, a Real Estate Advisor and Accredited Buyer’s Representative with RE/MAX Aerospace Realty only charges $500 commission to buyers.
Sellers can still choose to contribute to the buyer’s agent commission, but it is no longer a requirement. This arrangement will need to be negotiated between the buyer and seller or their respective agents​.
The written agreement should outline the specific commission fee, the services provided by the agent, and any other terms relevant to the buyer-agent relationship. This ensures transparency and sets clear expectations​.
These changes are expected to introduce more competition among agents, leading to potentially lower commission rates and a more transparent market. However, it may also mean buyers need to be more financially prepared to cover their agent’s fees upfront​​.
If you decide not to hire a buyer’s agent, you can still search for homes independently using online platforms. However, you will need to handle all aspects of the transaction, including negotiations and paperwork, which can be complex and time-consuming​.
Indeed, a real estate attorney can help with the legalities of buying a home, including contract negotiations and the closing process. This could be a practical option if you opt not to engage a buyer’s agent. While attorney fees may range from $1,500 to $2,500 for closing on a property (without showing properties or providing valuation), Rick Houston offers a flat fee of $500 to represent buyers.
There may be a decrease in the number of real estate agents as the market adjusts to these new rules. Some agents may leave the industry if they find it difficult to adapt to the changes in commission structures​.
Stay informed by discussing the new commission structures with your real estate agent, understanding all costs involved, and ensuring any agreements are clearly outlined in writing. This will help you make a more informed and confident decision in your real estate transactions​.
For buyers seeking expert representation in navigating these new rules, I offer my services for a flat fee of $500. As Rick Houston, ABR, MRP, a real estate advisor with RE/MAX Aerospace Realty, I am certified as an Accredited Buyer’s Representative and Military Relocation Professional. Let me help you make informed decisions and secure the best deal in your real estate transactions. Download helpful guides and our “Buyer Brokerage Agreement” below to begin working with me immediately:
Download the 2024 RE/MAX Buyer’s Guide
Discover the essential tips and insights for purchasing your dream home with the new 2024 RE/MAX Buyer’s Guide. This comprehensive brochure provides up-to-date information on market trends, financing options, and step-by-step guidance through the home buying process. Whether you’re a first-time buyer or looking to invest, this guide is designed to help you make informed decisions and achieve your real estate goals. Click here to download your free copy and start your journey to homeownership with confidence.
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Download and Preview the Buyer’s Brokerage Agreement
To ensure a smooth and transparent home buying process, all clients must sign a “Buyer’s Brokerage Agreement” to work with me. This agreement outlines our mutual responsibilities and sets clear expectations for our professional relationship. It guarantees that you receive dedicated and personalized service throughout your real estate journey. Click below to download and preview the agreement, and feel free to reach out with any questions or concerns. Let’s get started on finding your dream home together!
Frequently Asked Questions for Sellers Under the New Commission Rules
Under the new rules, sellers are no longer required to pay the buyer’s agent commission when listing a property on MLS. You will now only pay your listing agent’s commission, and any agreement to split commission with the buyer’s agent must be negotiated separately.
Yes, you can still offer to pay the buyer’s agent commission, but it must be explicitly agreed upon with the buyer’s agent. This agreement will not be facilitated through the MLS as it was previously​.
Since you are no longer required to pay the buyer’s agent commission, you may have more flexibility with your listing price. This could potentially make your property more attractive to buyers who are now responsible for their agent’s fees​.
The impact on the speed of sale will depend on various factors, including market conditions and how appealing your commission arrangement is to buyer’s agents. Transparent and competitive commission offerings can still attract motivated buyer’s agents​.
Consider the overall market conditions, the typical commission rates in your area, and the value provided by the buyer’s agent. It’s important to negotiate a fair rate that reflects the services offered by the buyer’s agent.
Consider the overall market conditions, the typical commission rates in your area, and the value provided by the buyer’s agent. It’s important to negotiate a fair rate that reflects the services offered by the buyer’s agent.
All commission arrangements should be clearly disclosed in the listing agreement and any promotional materials. Transparency is key to ensuring that potential buyers understand the costs associated with purchasing your property​.
Your relationship with your listing agent should remain focused on marketing and selling your property effectively. The new rules may encourage more collaborative and flexible commission agreements between listing agents and buyer’s agents.
While the new rules may change the dynamics of commission negotiations, good buyer’s agents will still seek to work with sellers who offer fair and transparent commissions. Building a strong relationship and clear agreement with buyer’s agents can facilitate successful transactions.
Work closely with your listing agent to ensure all commission agreements are properly documented and disclosed. Stay informed about the latest regulations and seek legal advice if necessary to ensure full compliance with the new rules.
For sellers navigating these new commission rules, my expertise and dedication as a listing agent can make a significant difference. I offer comprehensive services tailored to your needs, ensuring transparent and competitive commission agreements that can maximize your net proceeds. With the new rules encouraging more flexible and negotiable commission structures, I am committed to providing exceptional service to help you effectively market and sell your property.
As Rick Houston, ABR, MRP, a real estate advisor with RE/MAX Aerospace Realty, I bring a wealth of knowledge and a proven track record of success in the Cape Canaveral area. Let me guide you through this evolving real estate landscape with professionalism and personalized attention. Contact me today to learn how we can achieve your real estate goals together.