Title: Understanding Buyer’s Agent Commissions in Today’s Real Estate Market
One common question buyers often ask when entering the real estate market is who is responsible for paying their agent. Traditionally, sellers covered both the buyer’s and seller’s agent commissions. However, recent changes following the NAR settlement have shifted dynamics in the real estate industry. Now, buyers must agree to their agent’s fee before touring homes, and negotiating who covers the buyer’s agent fee is more common in offers. It is essential to understand how these changes impact the buying process in today’s real estate market.
In this Redfin article, we will explore how buyer’s agents are paid and what buyers should anticipate in the evolving real estate landscape.
How Buyer’s Agents Get Paid
Traditionally, sellers paid commissions to both the listing and buyer’s agents. However, as of August 17, 2024, buyers must agree to their agent’s fee before touring homes. This change makes it more common for buyers and sellers to negotiate the buyer’s agent fee as part of their offer. While buyers can still request sellers to cover the fee, it is no longer guaranteed. Compensation discussions between sellers and their listing agents will determine the final decision.
How Redfin Differs in Commissions
At Redfin, we prioritize offering consumers the best deal possible. Our buyer service fees vary by market but remain competitive to help you secure a winning offer. Additionally, we provide additional savings through our Sign & Save program, reducing our fee by 0.25% for buyers who commit to hiring us after the first tour. Our commitment to providing exceptional service and value sets us apart in the industry.
Can Buyers be Asked to Pay Agent’s Commission?
Buyers can be asked to pay their agent’s commission, either partially or in full, as commissions are negotiable. Recent industry changes have made it more common for buyers and sellers to negotiate the buyer’s agent commission within their offer terms. While buyers can still request seller contributions, it ultimately depends on the agreement reached by both parties.
What to Expect as a Buyer
As a buyer, anticipate that agent fees may become part of your negotiation process. While some sellers may still cover the buyer’s agent commission for competitiveness, it is no longer a guarantee. Each transaction varies, so remaining flexible and discussing details with your agent is crucial. Working with a knowledgeable real estate agent can ensure you achieve the best outcome for your home purchase.
In conclusion, understanding the changes in buyer’s agent commissions in today’s real estate market is essential for navigating the buying process. Negotiating commissions, discussing terms with your agent, and staying flexible are key to achieving a successful home purchase. Stay informed and work closely with your agent to make informed decisions in this evolving real estate landscape.
